The Direxion Daily FTSE China Bull 3X Shares (YINN) plunged 7.11% in pre-market trading on Friday, as disappointing earnings results from Chinese tech giants Baidu and PDD Holdings fueled investor concerns over corporate profitability and China's economic growth outlook.

Chinese stocks listed on U.S. exchanges, including YINN, XPeng, Bilibili, Baidu, KE Holdings, iQiyi, Alibaba, NIO, NetEase, and PDD Holdings, fell sharply in pre-market trading. The sell-off was triggered by a slew of lackluster earnings reports from major Chinese companies like Alibaba, Baidu, and PDD Holdings, highlighting the weakness in China's economic recovery and the urgency for policymakers to take more aggressive measures to stimulate growth.

Investors are rapidly losing patience with the pace of stimulus measures implemented by Chinese authorities. Recent fiscal measures approved to address the hidden debt crisis at local governments fell short of market expectations, further dampening sentiment. Additionally, concerns over geopolitical risks have escalated, with the Republican Governor of Texas, Greg Abbott, ordering state agencies to cease investing state funds in China and sell existing holdings, citing financial and security risks.