The Direxion Daily FTSE China Bull 3X Shares (YINN) ETF plummeted 5.12% in pre-market trading on Monday, as concerns over slowing factory activity growth in China and escalating trade tensions with the US weighed heavily on the outlook for the nation's export-driven economy.
According to the Caixin/S&P Global manufacturing Purchasing Managers' Index (PMI) survey released on Monday, China's factory output growth slowed to a 4-month low of 50.1 in January, missing analyst estimates. The survey cited rising global trade uncertainties and fresh U.S. tariff threats as key factors leading to a decline in new export orders for Chinese manufacturers.
As an ETF providing leveraged exposure to Chinese equities, the Direxion Daily FTSE China Bull 3X Shares was highly sensitive to negative sentiment around China's economic prospects. With worries that a potential trade war could further dampen China's exports and manufacturing sector, the bullish China ETF saw a sharp sell-off in the pre-market session.
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