Chemical ETF closes nearly 1% higher, China Chemical is expected to stabilize the supply to the entire world, and institutions say there may be a violent rebound after passionate sell-off.

How do geopolitical fluctuations catalyze a rebound in the chemical sector?

The chemical sector experienced a strong rebound today. On the evening of the 23rd, the U.S. unilaterally signaled a temporary halt in strikes for five days while negotiating with Iran, which was subsequently denied by Iran. Meanwhile, there were reports of mediation from the Middle East, Egypt, and India. On the 24th, the latest news revealed that two U.S. officials disclosed plans for thousands of U.S. Marine Corps members to arrive in the Middle East on the 27th. The U.S. Department of Defense is considering deploying the Army’s 82nd Airborne Division’s “rapid reaction force” to support U.S. operations in Iran. The upward trend in oil prices has temporarily eased, alleviating concerns over stagflation and severe economic recession, leading to improved market sentiment, with previously undervalued chemical stocks seeing significant gains.

Institutions pointed out that the conflict in the Middle East is merely a setback in this epic cycle of the chemical sector. During the 14th Five-Year Plan period, efforts will be made to advance carbon peak goals, with restrictions on high-energy-consuming products expected to be gradually introduced. There will be a clear shift towards deepening the regulation of “involutionary” competition, and the turning point for chemical prosperity is gradually becoming clearer. Future cycle profits are expected to reach new highs. Coupled with escalating geopolitical conflicts and the backdrop of rising oil price levels, overseas energy costs will significantly increase. China’s coal chemical industry and low-cost large-scale refining will become scarce assets, and Chinese chemicals are likely to stabilize global supply. Following the panic sell-off, a violent rebound is inevitable, and there is a comprehensive and firm outlook for the dual rise in profitability and valuation of the entire Chinese chemical sector.

As of 15:00 on March 24, 2026, the CSI sub-industry chemical theme index (000813) rose strongly by 1.02%. Component stocks such as Zangge Mining rose by 7.50%, Hongda shares rose by 5.57%, and Salt Lake shares rose by 5.29%, while individual stocks like Lixia Technology and Tongkun shares also followed suit. The chemical ETF (159870) increased by 0.96%, with the latest price reported at 0.84 yuan.

The chemical ETF closely tracks the CSI sub-industry chemical theme index. The CSI sub-industry theme index series is composed of seven indices, including sub-divisions of non-ferrous metals and machinery, selecting larger, more liquid listed company securities from related sub-industries as index samples to reflect the overall performance of listed company securities in the corresponding sub-industries.

Data shows that as of February 27, 2026, the top ten weighted stocks in the CSI sub-industry chemical theme index (000813) are Wanhua Chemical, Salt Lake Shares, Zangge Mining, Tianci Materials, Hualu Hengsheng, Yuntianhua, Juhua Shares, Hengli Petrochemical, Baofeng Energy, and Rongsheng Petrochemical, with the top ten weighted stocks accounting for a total of 45.18%.

Chemical ETF (159870), off-market connections (A: 014942; C: 014943; I: 022792).