Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged ETF tracking Chinese stocks, surged 5.05% in pre-market trading on Monday. This significant uptick comes in the wake of the United States suspending tariffs on a range of consumer electronics, a move that has broadly boosted Chinese ETFs and ADRs.

The rally in YINN is part of a wider trend seen across Chinese stocks trading in the US markets. Other notable gainers include tech giants Alibaba and JD.com, as well as electric vehicle makers XPeng and Li Auto, all of which saw substantial increases in overnight trading. The suspension of duties on items such as smartphones, laptops, and memory chips has particularly benefited the tech-heavy Chinese stock sector.

However, investors should note that US President Donald Trump has emphasized that this tariff exemption is temporary. The President indicated that separate tariffs on these items may be introduced in the future, which could potentially impact the trajectory of Chinese stocks. As a leveraged ETF, YINN's movements are amplified compared to the underlying index, explaining its outsized 5.05% gain in response to the positive market sentiment.