The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) surged 6.36% to close at $59.83 on January 31, as Chinese stocks faced significant pressure from a confluence of economic and geopolitical factors. Chinese markets were rattled by disappointing economic data, including a contraction in factory activity and a slowdown in the services sector, which contributed to a bearish outlook. Industrial profits in China fell by 3.3% in 2024, exacerbating investor concerns. Additionally, the yuan's depreciation and deflationary pressures have further weighed on market sentiment. The situation was compounded by the announcement of impending U.S. tariffs on Chinese goods, set to take effect on February 1, which added to the negative sentiment surrounding Chinese equities. As a result, the Shanghai Composite Index and the Shenzhen Component both experienced declines, with the latter falling 1.33% to 10,156.