Direxion Daily FTSE China Bull 3X Shares (YINN) surged 5.32% in pre-market trading on Wednesday, as Chinese ETFs and ADRs experienced a broad rally. The uptick comes in response to China's latest announcement of enhanced support for science and technology innovation enterprises.

According to guidelines jointly released by seven Chinese authorities, including the science and technology ministry, China plans to expand its pilot program for financial asset investment companies (AICs). This initiative aims to bring more equity investment to tech innovation firms. Additionally, the government expressed support for these companies to list abroad, signaling a potentially more open approach to international capital markets.

The positive sentiment was reflected across various Chinese stocks, with Tencent Music rising 6%, Li Auto up 3%, and other major players like Baidu, XPeng, Alibaba, and PDD Holdings also seeing gains. This widespread rally in Chinese equities likely contributed to YINN's significant pre-market jump, given its 3X leveraged exposure to Chinese stocks.

As investors digest these policy developments, the pre-market surge in YINN suggests growing optimism about the Chinese market's near-term prospects. However, as with all leveraged ETFs, traders should be mindful of the increased volatility and risks associated with such instruments.