Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged ETF tracking Chinese stocks, experienced a dramatic pre-market plunge of 25.13% on Monday, extending its losses from the previous night's trading. This sharp decline comes as part of a broader and significant selloff affecting Chinese ETFs and ADRs in the global markets, reflecting growing concerns about the Chinese economy.

The downward movement in YINN appears to be primarily driven by a general weakness in Chinese equities. The FTSE China A50 Index Futures, a key benchmark for Chinese stocks, saw a decline of nearly 4%, setting a decidedly negative tone for Chinese-related investments. This bearish sentiment has rippled through various Chinese stocks and ETFs traded internationally, with YINN's triple-leveraged nature amplifying the market's negative performance.

Other major Chinese companies and ETFs also experienced significant drops in overnight trading. Notable declines include PDD Holdings falling 7%, XPeng down 6%, and both JD.com and Li Auto declining by 5%. E-commerce giant Alibaba was not spared, registering a 4% decrease. The widespread nature of these losses across different sectors of the Chinese market suggests that investors are reevaluating their positions in Chinese equities, potentially due to economic concerns or geopolitical factors affecting the region. As markets open for Monday trading, investors will be closely watching for any signs of stabilization or further decline in Chinese stocks.