Chinese stocks and exchange-traded funds (ETFs) trading in the U.S. markets experienced a significant selloff on Monday, October 15th, with the Direxion Daily FTSE China Bull 3X Shares (YINN) plunging over 10% in pre-market trading. The widespread decline was fueled by mounting concerns over China's economic growth and escalating trade tensions.

The trigger for the negative sentiment was China's weak export growth data for September, which showed outbound shipments growing by just 2.4% year-on-year, missing expectations and marking the slowest pace since April. This raised fears about broader economic challenges in China, with potential negative implications for companies heavily reliant on global trade.

Adding to the woes, reports emerged that China has begun enforcing a long-overlooked tax on overseas investment gains by the country's ultra-rich, as part of efforts to expand its revenue sources and align with the "common prosperity" campaign. The crackdown on wealthy individuals with offshore assets could further dampen investor sentiment and capital flows.