The Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged ETF that aims to deliver triple the daily returns of the FTSE China 50 Index, plunged 12.64% in pre-market trading on Wednesday, October 3rd, 2024.

The sharp decline came as investors cashed in on recent gains following a multi-day rally in Chinese stocks and related ETFs. YINN had experienced consecutive surges in the previous trading sessions, as investors reassessed the prospect of easing tensions between the U.S. and China.

However, concerns over ongoing geopolitical tensions and economic uncertainties prompted some investors to take profits on their positions in Chinese equities, leading to the pre-market sell-off. Major Chinese stocks and ADRs also experienced sharp declines, with Alibaba shedding 1.7%, PDD Holdings dropping 3.7%, Bilibili and iQiyi both down over 4%, and XPeng, Baidu, and NIO all declining more than 2%.