The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) is experiencing upward momentum as China's economic data reveals significant weaknesses. China's imports fell sharply by 10.6% y/y in November, marking the steepest decline in 14 months, as reported by the General Administration of Customs. This unexpected drop highlights the challenges facing the world's second-largest economy, including weaker domestic demand, ongoing COVID-19 restrictions, and a global economic slowdown. The disappointing trade data has raised concerns about the effectiveness of government stimulus measures and the overall health of China's economic recovery.
In addition to the trade data, geopolitical tensions are adding to the market's unease. Reports of nearly 90 Chinese navy and coast guard vessels massing near Taiwan and other strategic areas have heightened geopolitical risks, further impacting investor sentiment. The skepticism surrounding Beijing's fiscal and monetary stimulus measures for 2024 is also contributing to the bearish outlook on Chinese equities. Analysts express doubts about the potential for meaningful economic recovery, given China's high debt levels and deflationary pressures.
The YANG ETF rose to $64.30, up 12.02% as of 9:45 AM ET on December 10th.