The Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged exchange-traded fund providing amplified exposure to Chinese equities, plunged 37.14% in pre-market trading on Monday, October 8th, 2024.
The steep sell-off came as a recent euphoric rally in Chinese stocks cooled amid disappointment that officials did not unveil any major fresh stimulus policies at a much-anticipated economic briefing over the weekend. Over the past month, Chinese equities had surged nearly 30% as investors cheered previous stimulus measures announced by Beijing, including interest rate cuts and funds for corporate stock buybacks. However, the lack of new bold measures dashed hopes for a sustained rebound, triggering heavy profit-taking.
The sell-off in YINN also saw Chinese ADRs and ETFs pare some overnight losses on Monday, with some stocks like XPeng and Trip.com managing to turn positive amid expectations that more fiscal stimulus could still be announced soon.
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