Direxion Daily FTSE China Bull 3X Shares (YINN) experienced a dramatic pre-market soar of 10.47% on Monday, as investors reacted enthusiastically to significant progress in US-China trade negotiations. The leveraged ETF, which provides triple exposure to Chinese stocks, outpaced the general uptrend seen in Chinese ETFs and ADRs following a diplomatic breakthrough over the weekend.

The surge comes after US and Chinese officials reported "substantial progress" following two days of talks in Switzerland aimed at de-escalating trade tensions. Both sides agreed to create a mechanism for further discussions, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. This positive outcome has sparked optimism among investors about improved US-China relations and potential economic benefits for Chinese companies.

While specific measures are yet to be announced, the constructive tone from both parties has significantly boosted market sentiment. Other Chinese ETFs and ADRs also saw notable gains, with CWEB, PDD, and JD up 4%, and Alibaba rising 3%. However, YINN's pronounced 10.47% increase reflects the amplified investor enthusiasm for the Chinese market, due to its leveraged nature. This movement underscores the potential for rapid gains - and losses - in leveraged ETFs based on geopolitical developments and market sentiment shifts.