Shares of the Direxion Daily FTSE China Bull 3X Shares ETF (YINN) plunged 5.3% in pre-market trading on Thursday, following disappointing economic data from China that showed a sharp drop in industrial profits.

According to China's National Bureau of Statistics, industrial profits plummeted 17.8% year-over-year in August, a stark reversal from the 4.1% increase recorded in July. For the first eight months of 2024, profits at large industrial firms grew just 0.5% to 4.65 trillion yuan ($663 billion), compared to 3.6% growth in the January-July period.

The dismal industrial profits data highlights the continued struggles facing China's economy, which has been weighed down by sluggish domestic demand, a prolonged housing downturn, and rising unemployment. The weak economic conditions have prompted concerns that Beijing may miss its full-year GDP growth target of around 5%.