The Direxion Daily FTSE China Bull 3X Shares (YINN) surged by 5.01% in pre-market trading on October 29, 2024, driven by a broad rally in Chinese stocks and American Depositary Receipts (ADRs) of Chinese companies.

The rally was fueled by two key developments from Chinese authorities aimed at supporting the slowing economy:

First, the People's Bank of China announced a new lending tool called "open market outright reverse repo operations facility" to inject more liquidity into the banking system and maintain ample credit flow. This move by the central bank to enhance its policy toolkit and provide additional liquidity boosted investor sentiment and triggered a buying spree in Chinese equities.

Second, reports emerged that China is considering approving a massive fiscal stimulus package over the next few years, including the issuance of up to $1.4 trillion in fresh debt through special treasury bonds, local government bonds, and bonds for idle land and property purchases. This potential fiscal stimulus, if approved, is expected to revive China's fragile economy, which has been hit hard by a protracted property sector crisis and ballooning debt of local governments.

As a leveraged bull ETF designed to provide triple the daily returns of the FTSE China 50 Index, YINN benefited significantly from the positive sentiment surrounding the central bank's liquidity injection and the prospects of a massive fiscal stimulus package. Major Chinese companies like Nio, Bilibili, iQiyi, Baidu, XPeng, and Tiger Brokers saw significant gains, contributing to YINN's sharp pre-market rise.