The iShares China Large-Cap ETF (FXI) experienced a significant decline of 5.01% on October 15, 2024, as investors grew increasingly concerned about China's economic prospects and the potential effectiveness of government stimulus measures.

The plunge in FXI was fueled by reports that China's finance ministry announced plans to increase borrowing without providing specific details on the timing or the amount, disappointing investors who were hoping for more clarity on the government's support measures. Additionally, a Reuters poll suggested that China's economic growth in 2024 might miss the government's target, further exacerbating fears about the country's economic trajectory.

Moreover, Barclays analysts recommended option trades to hedge against potential disappointment from China's stimulus efforts and the increased likelihood of a Trump presidency in the United States. This recommendation reflected the broader concerns among investors about the policy environment and its potential impact on China's economy.