Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged ETF tracking Chinese stocks, soared 5.54% in pre-market trading on Wednesday. This significant upward movement comes on the heels of a newly released survey indicating a surge in global institutional investors' confidence in Chinese equities.

According to the "Emerging Markets Investment Intention Survey" conducted by HSBC Holdings PLC, Chinese stocks have emerged as the top choice for global institutional investors in emerging markets. The survey, which gathered insights from 100 investors across 100 institutions managing $423 billion in emerging market assets, revealed that over half of the respondents expressed the greatest optimism toward mainland China's stock market prospects. This represents a substantial increase from approximately one-third recorded in the previous survey in June.

The heightened enthusiasm for Chinese stocks is attributed to investors' confidence in China's economic stimulus policies and positive developments in China-US trade relations. As YINN is designed to provide three times the daily performance of the FTSE China 50 Index, this bullish sentiment towards Chinese equities is amplified in the ETF's pre-market surge. Investors appear to be positioning themselves for potential gains in the Chinese market, driving up demand for leveraged instruments like YINN that offer magnified exposure to Chinese stocks.