The reason why Huabao Oil and Gas fell so sharply on November 8, 2022 is that the oil and gas production index is mainly related to market supply and demand.

As oil prices have been falling last year, oil companies have had operational difficulties and have reduced production or shut down oil wells, resulting in a decline in the oil and gas production index.

Huabao Oil & Gas mainly invests in S&P Oil & Gas Upstream Stock Index constituent stocks and alternative constituent stocks, with the proportion of no less than 80% of the fund's net asset value.

The index's components are companies listed on major U.S. exchanges and include companies in upstream industries such as oil and gas exploration, extraction and production.