The Direxion Daily FTSE China Bull 3X Shares ETF (YINN) soared 7.25% in pre-market trading on Monday, riding a wave of optimism surrounding potential new stimulus measures from China's government to revive the country's slowing economic growth.
The pre-market rally in YINN, a leveraged ETF that seeks to deliver three times the daily returns of the FTSE China 50 Index, came ahead of a highly anticipated press briefing by China's top economic planner, the National Development and Reform Commission (NDRC). The briefing, scheduled for Tuesday, will discuss a package of policies aimed at boosting growth, according to a government notice on Sunday.
Investor sentiment towards Chinese stocks and related ETFs has turned increasingly bullish in recent days, as Wall Street firms like Goldman Sachs, HSBC, and BlackRock have grown more optimistic about the potential impact of Beijing's stimulus blitz. Goldman Sachs upgraded its rating on Chinese equities to "overweight" on Thursday, projecting further gains of 15-20% if authorities deliver on the promised policy measures, which are expected to include interest rate cuts, increased bank lending, and direct support for the stock market.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.