The Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged exchange-traded fund providing amplified exposure to Chinese equities, plummeted around 37% in pre-market trading on Monday, October 8th, 2024.

The steep sell-off came as a euphoric rally in Chinese stocks over the past month cooled amid disappointment that officials from China's economic planners failed to unveil any major new stimulus policies at a much-anticipated briefing over the weekend.

Over the prior weeks, Chinese equities had surged nearly 30% as investors cheered previous stimulus measures announced by Beijing, including interest rate cuts, easing bank capital requirements, and funds for corporate stock buybacks. However, the lack of bold fresh measures at the weekend briefing dashed hopes for a sustained rebound, triggering heavy profit-taking in the leveraged YINN fund and other China-exposed assets.