The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) is experiencing a notable surge, driven by a combination of weak economic data from China and investor sentiment shifts. On December 10, 2024, data revealed that China's exports grew at a slower pace in November, while imports unexpectedly shrank, signaling potential economic challenges for the world's second-largest economy. This has led to a decline in Hong Kong stocks, which initially surged but then fell, impacting related U.S. markets. The volatility in the Chinese market has prompted a significant pre-market movement in Direxion's China ETFs, with YANG benefiting from the bearish sentiment.
Additionally, despite China's recent promises of bold economic support, the global market response has been muted. The MSCI Asia Pacific regional benchmark showed little change, and stocks in Australia, a key trading partner with China, fell. This tepid reaction suggests that investors remain cautious about China's economic outlook, further fueling the bearish sentiment that benefits YANG. Meanwhile, Invesco's optimistic view on Chinese equities, based on anticipated stimulus measures, contrasts with the current market sentiment, highlighting the complexity of investor perspectives.
The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) is up 13.1% in pre-market hours on Tuesday, December 10, reaching $64.92 as of 6:00 AM ET.