Oil‑and‑gas sector surges in the opening session of the 2026 “马” year

The first trading day of the 2026 lunar year, marked by the Chinese Zodiac horse, saw a robust rally across Shanghai, Shenzhen and the ChiNext board. Three major indices finished the session with gains of 0.87 %, 1.36 % and 0.99 % respectively, while overall market volume climbed to 2.22 trillion CNY—an increase of 2.193 trillion CNY over the previous day.

The rally was dominated by the oil‑and‑gas sector. More than 100 individual stocks hit the daily ceiling, with notable performers such as Tongyuan Petroleum, Zhunyou Shares, Shandong Molong, and Zhonghai Oil Service recording limit‑up trades. The surge was driven by a sharp rise in international oil prices, spurred by geopolitical uncertainty in the Middle East, which has bolstered sentiment for upstream and service companies.

Impact on Xinjiang Zhundong Petroleum Technology Co., Ltd. (XZPT)

XZPT, listed on the Shenzhen Stock Exchange, specializes in dynamic monitoring and enhanced‑oil‑recovery services, along with a suite of transportation and downhole operation solutions. The company’s shares closed at CNY 10.09 on February 12, 2026—well below their 52‑week high of CNY 12.30 set on January 29, and just above the 52‑week low of CNY 4.42 from April 8, 2025.

With a market capitalisation of CNY 2.908 billion, XZPT trades at a price‑to‑earnings ratio of –81.44, reflecting the broader downturn in oil‑sector profitability that accompanies volatile commodity prices. Nevertheless, the recent market rally has increased liquidity and investor attention toward oil‑related equities, potentially benefiting companies that provide upstream support services such as XZPT.

Sectoral themes and investor expectations

Analysts at leading brokerage firms have identified the oil‑gas, precious‑metals and chemical sectors as the primary drivers of today’s rally. They caution that while oil prices are unlikely to move unilaterally, geopolitical tensions may amplify short‑term volatility. Investors are therefore advised to focus on upstream firms with direct exposure to oil‑gas resources and on those that can capture the upside of enhanced recovery and dynamic monitoring services.

In the context of XZPT, the company’s diversified service portfolio—ranging from well‑testing and production logging to acidification and nitrogen‑injection solutions—positions it well to capitalize on heightened demand for upstream optimisation. However, the firm’s negative earnings multiple underscores the need for careful assessment of operating margins in a high‑oil‑price environment.

Looking ahead

The first day of the “马” year has set a positive tone for the Chinese equity market, with the oil‑gas sector leading the charge. As international oil prices continue to fluctuate, the performance of companies like XZPT will hinge on their ability to deliver cost‑effective, technology‑driven solutions that enhance production efficiency for exploration and development operators.

For investors and market observers, the immediate takeaway is clear: the oil‑gas sector remains a focal point of market activity, and companies that provide specialised upstream services—such as Xinjiang Zhundong Petroleum Technology—are poised to benefit from sustained demand for efficiency‑boosting technologies in the coming months.