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

YINN's dramatic decline followed a volatile trading session for Chinese stocks on Monday. After surging nearly 11% at the open, the benchmark CSI 300 Index pared gains and closed the day up just 5.1%. The cooldown in sentiment was triggered by a press briefing held by officials from China's top economic planner, the National Development and Reform Commission (NDRC), where they fell short of unveiling any major fresh stimulus policies to support the economy.

The lack of bold stimulus announcements dashed investor hopes for a sustained rebound in Chinese equities, leading to heavy profit-taking and a sharp reversal in the market's recent rally. The negative sentiment also spilled over to other China-related assets, with Chinese ADRs and ETFs listed in the U.S. and Hong Kong suffering steep declines.