The Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged exchange-traded fund that provides amplified exposure to Chinese equities, plummeted 37.14% in pre-market trading on Monday, October 8th, 2024. The steep sell-off came as a recent euphoric rally in Chinese stocks fizzled out amid disappointment over the lack of significant new stimulus measures announced by Beijing.

Over the past month, Chinese equities had been on a tear, with the benchmark CSI 300 Index surging nearly 30% as investors cheered a slew of stimulus policies unveiled by authorities to revive the nation's slowing economy. These measures included interest rate cuts, easing bank capital requirements, and funds for corporate stock buybacks.

However, the rally cooled on Monday after officials from China's top economic planner, the National Development and Reform Commission (NDRC), held a much-anticipated press briefing but fell short of unveiling any major fresh stimulus policies. While the NDRC reiterated plans to boost investment and support for low-income groups, the lack of bold new measures dashed investor hopes for a sustained rebound in Chinese equities, triggering heavy profit-taking.