The Direxion Daily FTSE China Bull 3X Shares ETF (YINN) plummeted nearly 7.5% on Wednesday as Chinese stocks and American Depository Receipts (ADRs) fell sharply after a disappointing policy briefing from the Chinese government failed to deliver the kind of significant fiscal stimulus that investors were hoping for.

Traders were anticipating a strong pro-growth package from Beijing to revive the faltering rally in Chinese markets, but the briefing largely reiterated previous measures and fell short of providing the substantial firepower that could restore confidence in the country's economic outlook.

The market response suggests that authorities face a high bar to satisfy traders' expectations and turn around the moribund economy. Other Chinese companies trading in the US also tumbled, with KE Holdings down 7%, Li Auto dropping 4.3%, XPeng falling 4%, Nio down 3%, JD.com shedding 2.5%, PDD Holdings losing 2%, and Alibaba slipping 1%.