Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged ETF tracking Chinese stocks, experienced a significant 24-hour plunge of 12.12% in Sunday night trading. This sharp decline comes as part of a broader selloff affecting Chinese ETFs and ADRs in the global markets.
The downward movement in YINN appears to be 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 negative tone for Chinese-related investments. This bearish sentiment has rippled through various Chinese stocks and ETFs traded internationally.
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. These widespread losses across different sectors of the Chinese market contribute to the amplified negative performance of YINN, given its triple-leveraged nature.
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