The Direxion Daily FTSE China Bull 3X Shares (YINN), an exchange-traded fund that aims to deliver triple the daily returns of the FTSE China 50 Index, witnessed a significant pre-market surge of 5.16% on Wednesday. This rally was fueled by Wall Street's growing optimism regarding Chinese stocks, driven by China's remarkable advancements in artificial intelligence (AI) technology.

Several prominent Wall Street firms, including Morgan Stanley, JPMorgan Chase & Co., UBS Group AG, Goldman Sachs, and Deutsche Bank, have expressed bullish sentiments about the prospects of Chinese stocks, particularly in the AI and technology sectors. They believe that China's groundbreaking achievements in AI, exemplified by the DeepSeek model, have challenged previous assumptions about the country's technological capabilities and spurred a reassessment of its investability.

Wall Street strategists anticipate that the momentum fueled by China's AI breakthroughs will continue, driven by factors such as global investors' light positioning in Chinese stocks, ample liquidity, lower interest rates, and potential policy support. Furthermore, they expect Chinese firms to benefit from efficiency improvements enabled by AI, which could translate into higher earnings and valuations, narrowing the gap with their U.S. counterparts.