Direxion Daily FTSE China Bull 3x Shares (ARCA: YINN)

最新ニュース Direxion Daily FTSE China Bull 3x Shares (ARCA:YINN)

Direxion Daily FTSE China Bull 3x Shares

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The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, and securities of the index, exchange-traded funds that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index consists of the 50 largest and most liquid public Chinese companies currently trading on the Stock Exchange of Hong Kong. The fund is non-diversified.

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ETFs with <a href="https://www.benzinga.com/etfs">significant exposure to Chinese stocks</a> surged on Monday, as stronger-than-expected manufacturing data and expectations of fresh stimulus from Beijing boosted investor confidence. The gains helped recoup some of last week's losses, which were driven by economic uncertainty and trade tensions between <a href="https://www.benzinga.com/markets/25/02/43938959/trump-targets-chinas-tech-sector-with-stricter-biden-era-chip-curbs-it-will-backfire-says-beijing">China and the U.S</a>. 
Several ETFs tracking Chinese stocks inched up in response to the market rebound.
ETFs To Watch
KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) Gained 0.6% at 12:51 pm EST as Chinese tech stocks rebounded amid optimism about a consumer demand recovery. Alibaba Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) is one of the fund&#8217;s top holdings.
GraniteShares 2x Long BABA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BABX#NASDAQ">BABX</a>): Mirrored Alibaba's rebound as investors anticipated stimulus-driven consumer spending growth and gained 2.3% as of 12:51 pm EST.
SPDR S&amp;P China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXC#NYSE">GXC</a>): Gained as investor sentiment improved toward high-growth technology stocks listed on China's Star Market. Alibaba holds one of the premium positions in the fund&#8217;s holdings.
Also Read: <a href="https://www.benzinga.com/25/02/44040003/alibaba-expands-ai-workforce-while-deepseek-slashes-model-prices-in-market-battle">Alibaba Expands AI Intern Workforce While DeepSeek Slashes Model Prices in Market Battle</a>
Market Rebound Amid Trade War Concerns
Hong Kong's benchmark Hang Seng Index rose 1.2% by lunch break, recovering from Friday's biggest decline in four months, while the Hang Seng Tech Index gained 0.7%. On the mainland, the blue chip CSI300 Index added 0.5%, and the Shanghai Composite Index climbed 0.3%, reversing some of Friday's 2% drop.
The rebound came after both official and private-sector surveys showed China's <a href="https://www.cnbc.com/2025/03/03/china-february-caixin-pmi.html">manufacturing </a>activity expanded at the fastest pace in three months in February. Higher purchase volumes and rising new orders contributed to stronger industrial production, easing investor concerns about the country's economic strength.
Despite the moderate gains, market sentiment remained cautious as both China and the U.S. prepared to impose additional tariffs on each other. President Donald Trump announced an additional 10% tariff on all Chinese imports. In response, China is expected to implement countermeasures, likely targeting American agricultural exports, according to reports from Global Times.
However, analysts at Bank of America noted that these moves are likely negotiation tactics rather than signals of an impending full-scale trade war. &#8220;We think these moves are still tactics to put more bargaining chips on the table before negotiations take place,&#8221; they wrote in a research note.
Stimulus Expectations
Investors are now closely watching the &#8220;Two Sessions&#8221; meetings set to begin on Tuesday, where Beijing is expected to announce fresh economic stimulus measures. Policymakers are likely to maintain China's economic growth <a href="https://www.bloomberg.com/news/articles/2025-03-02/xi-prepares-to-unveil-china-stimulus-plan-as-trade-war-heats-up?sref=TBDibEcD">target </a>at around 5% while outlining a budget deficit of 4% of GDP, according to Bloomberg.
Despite cautious investor expectations regarding the parliamentary meetings, Goldman Sachs analysts highlighted that policy support aimed at boosting domestic demand could lead to further stock market gains. Historically, stimulus measures have disproportionately benefited high-quality, discounted Chinese stocks, making ETFs a preferred vehicle for capitalizing on market shifts.
Alibaba And Blue-Chip Stocks In Focus
Alibaba Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) remains a key focus for investors as it represents both China's growing technology sector and consumer spending trends. As economic stimulus measures trickle down, Alibaba and similar blue-chip stocks are poised to be among the first to attract fresh capital. 
Also, last week, Alibaba made its video and image-generating AI model, Wan 2.1, <a href="https://www.benzinga.com/25/02/43970279/alibaba-and-deepseek-intensify-ai-showdown-challenging-openai-and-nvidias-market-dominance">publicly available on ModelScope and HuggingFace</a> for academic, research, and commercial use. It has committed $53 billion over three years to enhance its AI and cloud infrastructure. Additionally, Alibaba CEO Eddie Wu met Chongqing's party secretary to discuss potential AI collaborations. These developments have sent Alibaba on a rally.
Investors eager to capitalize on the market&#8217;s resurgence may find opportunities in ETFs that provide broad exposure to China's leading companies. However, trade tensions and policy announcements in the coming weeks will likely determine the sustainability of this rebound.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/03/44085268/market-mayhem-5-etfs-that-soared-amid-volatility-last-week">Market Mayhem: 5 ETFs That Soared Amid Volatility Last Week</a></li>
</ul>
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3 China-Focused ETFs To Watch As Stronger Manufacturing Data, Stimulus Hopes Boost Sentiment

Traders seeking short-term opportunities in a changing economy are turning to leveraged and inverse ETFs as tools to capitalize on market shifts, particularly following the recent election. At the most recent virtual <a href="https://www.benzinga.com/events/">Benzinga</a> boot camp hosted by Direxion, analysts spotlighted strategies and trends driving interest in these financial instruments while emphasizing their role in tactical trading.
During the session, Gianni Di Poce, an analyst at The Mercator LLC, and Eliott Wellenbach, a senior vice president and institutional ETF strategist at Direxion, discussed the performance of leveraged ETFs in semiconductors, Chinese markets, and single-stock opportunities.
See Also: <a href="https://www.benzinga.com/24/12/42528079/this-high-yield-dividend-etf-is-undergoing-a-harsh-reversal-signaling-bearish-trends-here-what-you-need-to-know">This High Yield Dividend ETF Is Signaling Bearish Trends: Is Trouble Brewing?</a>
<h3 class="wp-block-heading">Why Traders Are Watching Semiconductors</h3>
The semiconductor industry remains a focal point for traders as artificial intelligence and quantum computing developments continue to shape the market. Di Poce pointed to the Philadelphia Semiconductor Index as a case study, noting its upward trend.
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"When looking at trends, higher highs and higher lows indicate where the bigger directional moves are likely to occur," Di Poce said. He emphasized the value of Direxion's triple-leveraged SOXL ETF for bullish opportunities while also recognizing potential on the bearish side with SOXS, depending on short-term market movements.
Wellenbach added context from fund flows, explaining that SOXL has been among the top ETFs for inflows this year, reflecting investor confidence in semiconductor performance. "SOXL is our second-largest fund by assets under management," he said, acknowledging recent weekly outflows as traders locked in profits.
<h3 class="wp-block-heading">China's Rebound Draws Interest</h3>
China's markets have also garnered attention after periods of volatility and downtrends. Di Poce highlighted the FTSE China 50 Index, explaining how stimulus measures and broader monetary shifts have contributed to a potential trend reversal.
"You had lower lows and lower highs for months, but that began to change earlier this year," Di Poce noted, pointing to recent higher lows as a signal of recovery. Direxion's YINN, a bullish China ETF, has seen notable inflows, aligning with the market's upward trajectory.
Wellenbach echoed this sentiment, adding that YINN became one of Direxion's top-performing funds following the Federal Reserve's rate adjustments. "The September easing helped shift global monetary flows, and traders recognized that opportunity," he said.
<h3 class="wp-block-heading">Single-Stock ETFs: A Growing Tool</h3>
Another focus of the session was single-stock ETFs. Di Poce discussed opportunities in high-profile names like Apple, Alphabet, and Tesla, noting their recent technical patterns.
"Apple broke through resistance and hit new highs, while Tesla confirmed its bull trend after months of declines," Di Poce said. Leveraged funds like AAPU for Apple and TSLU for Tesla offer traders tools to take short-term positions on individual stocks.
Wellenbach highlighted the increasing popularity of these ETFs, saying, "We've seen assets in single-stock funds grow from $1 billion to $6 billion this year as traders look for ways to express short-term convictions or hedge concentrated positions."
<h3 class="wp-block-heading">Education And Strategy Remain Crucial</h3>
Both analysts emphasized the importance of understanding how leveraged ETFs function throughout the event. Wellenbach stressed their role as short-term tools and warned traders against a buy-and-hold approach due to the funds' daily rebalancing.
"These are powerful instruments, but you need to know what you own and how they work," Wellenbach said. Di Poce echoed this caution, reminding traders to manage risk. "Leverage can amplify gains, but it can also amplify losses. You can't afford to stay wrong for long."
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42529095/bitcoin-crash-could-trigger-stock-market-decline-in-2025-warns-expert-im-very-worried-that-people-overextended-themselves">Bitcoin Crash Could Trigger Stock Market Decline In 2025, Warns Expert</a></li>
</ul>
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EXCLUSIVE: Leveraged ETFs Offer Short-Term Edge As Traders Eye Semiconductors, China, And Quantum Tech In Post-Election Market

<ul>
<li>TSLA</li>
<li>NVDA</li>
<li>WAY</li>
<li>LOT</li>
<li>MADE</li>
<li>PLTR</li>
<li>YINN</li>
<li>AI</li>
<li>QQQ</li>
<li>BABA</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
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Trading Ideas

MADE

NVDA

PLTR

TSLA

Top 10 Trending Stocks On WallStreetBets As Of October 10, 2024 (Via Swaggy Stocks)

<ul>
<li>NVDA</li>
<li>BABA</li>
<li>LOT</li>
<li>TSLA</li>
<li>WAY</li>
<li>YINN</li>
<li>MADE</li>
<li>MSTR</li>
<li>MSFT</li>
<li>GOOG</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

GOOG

MSFT

MSTR

Top 10 Trending Stocks On WallStreetBets As Of October 9, 2024 (Via Swaggy Stocks)

<ul>
<li>NVDA</li>
<li>BABA</li>
<li>YINN</li>
<li>SMCI</li>
<li>MSFT</li>
<li>YANG</li>
<li>WAY</li>
<li>MADE</li>
<li>RBLX</li>
<li>AI</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

RBLX

SMCI

YANG

Top 10 Trending Stocks On WallStreetBets As Of October 8, 2024 (Via Swaggy Stocks)

Wall Street was upbeat last week with the S&amp;P 500 adding 0.6%, the Dow Jones gaining 1.1% and the Nasdaq advancing 1.4%. The benchmark U.S. treasury yield started the week at 4.63%, hit a high of 4.69% and ended the week at 4.50%.&nbsp;
The Fed&#39;s plan to slower the balance sheet tightening process and the release of downbeat jobs data (which triggered bets over sooner-than-expected rate cuts) dragged down bond yields last week. The U.S. economy added 175,000 jobs in April, well below Wall Street expectations of 240,000. Health care and social assistance led the way with a gain of 87,000 jobs.
Meanwhile, corporate earnings have been bullish with Apple and Amazon coming up with both line beats. The corporate commentaries released throughout the week indicated the importance of AI growth and investments.
Meanwhile, crude oil ETF United States Oil Fund LP (ARCA:USO) dropped about 6.2% last week on weak demand growth and less supply worries emanated from the Gaza-Israel peace talk. Higher U.S. crude output too played its role in driving down the price of oil.
Against this backdrop, below we highlight winning leveraged ETFs of last week.
<h3>ETF Areas in Focus</h3>
Direxion Daily S&amp;P Biotech Bull 3x Shares (ARCA:LABU) &ndash; Up 24.55%
The U.S. benchmark treasury yield fell sharply last week. This boosted growth stocks and biotech technology. Novel drug launches, likely low rates and potential easy access to funds should buoy the zone in the near term.
Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (ARCA:EVAV) &ndash; Up 22.9%
Several electric vehicle stocks have been in sweet spot lately, as EV giant Tesla has surged post earnings. Chinese EV companies Nio and Xpeng have seen strong sales growth in 2024 despite massive price war. Nio stock was up 19% last week. Further, several auto companies are signing deals with Chinese tech companies to facilitate their innovations on AI and &quot;smart cars.&quot;
T-Rex 2X Long Apple Daily Target ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/aapx#BATS">AAPX</a>) &ndash; Up 16.8%
Apple stock gained 5.8% last week on upbeat earnings. Apple reported robust second-quarter fiscal 2024 results, wherein it beat estimates on both earnings and revenues. The iPhone manufacturer lifted its dividend payments and unveiled a record share buyback program despite the steep decline in iPhone sales.
Apple, which lags behind its peer in adopting AI, is gearing up for significant events that are expected to shape its future trajectory. A media event scheduled for May 7 is anticipated to unveil new iPad models and the annual Worldwide Developers Conference (WWDC), starting Jun 10, is anticipated to provide AI-related announcements and insights into the company&#39;s AI strategy.
Direxion Daily FTSE China Bull 3X Shares (ARCA:YINN) &ndash; Up 16.5%
Despite the Chinese economy&#39;s poor performance last year, global investors are returning to its equities this year. Compelling valuation, market restructuring, billions in buybacks, the AI boom and its impact on various industries have been boosting the space, of late. Foreign carmakers are joining hands with Chinese companies operating in artificial intelligence and other smart car technology. China tech ETF CQQQ added 6.4% last week while Alibaba and Baidu gaining about 7% and 8%, respectively.
AdvisorShares MSOS 2x Daily ETF (ARCA:MSOX) &ndash; Up 14.1%
Shares of cannabis companies surged last week after the U.S. Department of Justice (DoJ) moved to reclassify marijuana as a less dangerous schedule III drug. This indicates a moderate to low risk of physical and psychological dependence. Cannabis firms would stand to gain significantly as they would no longer fall under the purview of Section 280E of the U.S. federal tax code, presenting one of the most notable advantages.
<a href="https://www.zacks.com/stock/news/2268454/best-leveraged-etfs-of-last-week?cid=CS-BENZ-FT-etf_news_and_commentary-2268454">To read this article on Zacks.com click here.</a>

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Best Leveraged ETFs of Last Week

The Direxion Daily FTSE China Bull 3X Shares (NYSEARCA: YINN) seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.
The Direxion Daily FTSE China Bear 3X Shares (NYSEARCA: YANG) similarly seeks to magnify returns on the performance of the FTSE China 50 Index, but this time by seeking daily investment results of 300% of the inverse of the index&rsquo;s performance, before fees and expenses.
Consider trading these funds for the ability to potentially magnify returns based on the performance of that index &ndash; whether positive or negative.
The Chinese economy is the second largest economy in the world when ranked by nominal GDP and the largest when ranked by purchasing power parity. Home to some of the world&rsquo;s largest companies, China may be an attractive market for traders seeking to diversify their trades.
Weighted heavily in the consumer and financial sectors, the FTSE China 50 index is made up of the top 50 Chinese companies trading on the Hong Kong Stock Exchange in terms of size and liquidity. So the Direxion Daily FTSE China Bull and Bear 3x Shares provide daily exposure to Chinese giants like Tencent Holdings, Alibaba Group, Meituan, JD.com, China Construction Bank, Industrial Commerce Bank China, Ping An, Baidu, Bank of China and Wuxi Biologics.
Watch the full interview here:
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Featured Photo by<a href="https://unsplash.com/es/@ly0ns?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Li Yang</a> on<a href="https://unsplash.com/s/photos/china?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a>.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Direxion's YINN And YANG – Will Chinese Markets Move Up Or Down?

AAPL

AMZN

Top WallStreetBets Mentions for Tuesday May 31, 2022 Premarket: TSLA, GME, AMC, AMZN, PLTR, CEI, AMD, AAPL, YINN, CRM

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Direxion Daily FTSE China Bull 3X Shares Trading Following Effect of 1:10 Reverse Stock Split

Direxion Daily FTSE&nbsp;China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) are&nbsp;ETFs tracking the direct or inverse results of the FTSE China 50 Index by 300% and&nbsp;have experienced high levels of volatility over recent weeks.
The increasing volatility began on Feb. 23 following Russia&rsquo;s invasion of Ukraine, which stirred fear China could become at least partly involved in the crisis.
The Asian country has also been battling with a <a href="https://www.cbsnews.com/news/china-covid-lockdown-changchu-9-million-residents/">new wave</a> of the omicron COVID-19 virus, and on March 11 Chinese officials announced a lockdown for the city of Changchun, which has a population of nine&nbsp;million people.
The latest news has only accelerated the decline of Chinese stocks, which have plummeted over the past many months amid regulatory fears amid China&rsquo;s crackdown on its native companies. Alibaba Group Holdings&nbsp;Ltd - ADR&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), the second-largest <a href="https://research.ftserussell.com/Analytics/FactSheets/temp/b0db0e50-1447-42d8-a48c-291f4e9fa84a.pdf">holding</a> in the FTSE China 50 Index with a weighting of 8.48%, plunged about 77% from Oct. 27, 2020, all-time high of $319.32 to reach a multi-year low of $73.28 on March 15.
On March 16, YINN and YANG reversed course after The China Securities Regulatory Commission <a href="https://www.reuters.com/business/china-securities-regulator-push-forward-overseas-listing-rules-2022-03-16/">said it would</a> work with U.S. regulators to find a solution over audit supervision, which has put some China-based stocks in risk of being delisted from U.S. stock exchanges.
YINN, a triple leveraged fund that is designed to outperform the China 50 Index by three times, plummeted more than&nbsp;63% between Feb. 23 and March 15 before beginning to rebound. YANG, which is inversely correlated to the FTSE China 50 and delivers three times its decline, soared 144% higher over that same time period before suffering a massive sell-off.
The massive amount of volatility in the funds appears to have somewhat subdued over the past few trading days, although on Friday, YINN was soaring about 17% higher and YANG was falling about 16% lower. 
Over the coming trading days, it is likely that both funds will enter into consolidation patterns before continuing in the trends YINN and YANG have developed into on their charts.
It should be noted&nbsp;that events affecting the general markets, negative or positive reactions to earnings prints and news headlines can quickly invalidate patterns and breakouts. As the saying goes, &quot;The trend is your friend until it isn&#39;t,&quot; and any trader in a position should have a clear stop set in place and manage their risk versus reward.
See Also:&nbsp;<a href="https://www.benzinga.com/government/22/03/26159944/heres-why-alibaba-and-other-chinese-stocks-are-trading-higher-premarket">Here&#39;s Why Alibaba And Other Chinese Stocks Are Trading Higher Premarket</a>
The YINN Chart: In YINN&rsquo;s decline, the fund formed into a falling channel between two parallel trendlines and on March 16, YINN gapped up about 25% on the open, which represented a bullish break from the channel. A falling channel is considered to be a bearish pattern until a stock or ETF breaks up from the upper descending trendline of the pattern on higher-than-average volume.
<ul>
<li>YINN consolidated on Thursday with a bullish inside bar pattern and on Friday, the fund broke up bullishly from the pattern.</li>
<li>The fund may be forming an uptrend but will need to print a higher low above $2.80 in order to confirm the pattern. Bullish traders may choose to take a position when the higher low is confirmed by a reversal candlestick such as a doji or hammer.</li>
<li>YINN is trading on higher-than-average volume again on Friday, which indicates there is a high level of bullish interest in the fund.</li>
<li>There is resistance above at $6.31 and $7.75 and support below at $4.45 and $2.80.</li>
</ul>
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
<img alt="yinn_mar_18.png" src="https://www.benzinga.com/files/u278075/yinn_mar_18.png" style="height:427px; width:760px" />
The YANG Chart: After reaching a 52-week high of 48.44 on March 15, YANG gapped down more than 30% the following day and has continued to plummet since, plunging an additional 48% to trade below the $15 level.
<ul>
<li>Like YINN, YANG has had much higher-than-average volume but in this case the volume is bearish and indicates more downside may be in the cards.</li>
<li>The most likely scenario is that YANG will form an inside bar on Monday because the massive drop has pushed the relative strength index down to the 38% level.</li>
<li>The fund will eventually need to bounce up to form a lower high on the daily chart, and traders who are bearish on the FTSE China 50 Index may choose to take a position in YANG on confirmation of the lower high.</li>
<li>YANG has resistance above at $15.70 and $17.26 and support below at $12.68 and $10.35.</li>
</ul>
<img alt="yang_mar_18.png" src="https://www.benzinga.com/files/u278075/yang_mar_18.png" style="height:427px; width:760px" />

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YINN, YANG Pushed To Extremes As Chinese Stocks Rebound: How To Play The Funds

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
While the New York Stock Exchange had a hard time making up its mind regarding the listing fate of several of Chinese telecom companies, some index providers aren&#39;t playing around.
<h3>What Happened</h3>
On Thursday evening, FTSE Russell and MSCI, two of the largest sponsors of indexes used by issuers of exchange traded funds, announced the removal of some Chinese telecom companies from their benchmarks.
Add to that, next Monday, the &ldquo;Executive Order on Addressing the Threat from Securities Investments That Finance Communist Chinese Military Companies&rdquo; signed by President Trump goes into effect.
Combine those scenarios and it would be reasonable to expect these would be go-go days for the Direxion DailyFTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). In reality, it&#39;s YANG&#39;s bullish counterpart, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) that&#39;s looking appealing.
<h3>Why It&#39;s Important</h3>
YINN, which attempts to deliver <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs">triple the daily performance</a> of the FTSE China 50 Index, is higher by almost 7% over the past week, indicating an arguably surprising level of immunity to the China delisting controversy.
Still, there could be some reconfiguring in store for YINN&#39;s underlying index if more Chinese companies draw the ire of U.S. regulators and the major index providers.
&ldquo;Major international index providers completed their consultation processes and announced their plans,&rdquo; <a href="https://www.morningstar.com/articles/1017065/what-delisting-chinese-stocks-from-nyse-means-for-passive-funds">according to Morningstar</a>. &ldquo;The major benchmark providers will exclude the securities listed by the Office of Foreign Assets Control, or OFAC, from their equity and fixed-income indexes. Any index funds and exchange-traded funds whose benchmarks will be excluding the affected securities will follow suit.&rdquo;
Conversely, YINN could be in style for much of this year because analysts and asset allocators are bullish on emerging markets equities and its hard to extol that point of view while being on bearish on China &ndash; the largest developing economy.
<h3>What&#39;s Next</h3>
Given the fluidity of the listing situation, the bearish YANG may have its moments over the near-term, particularly if the scope of the aforementioned executive order is widened.
&ldquo;However, the interpretation of the executive order remains fluid. On Dec. 31, 2020, the New York Stock Exchange announced plans to delist the ADRs of three Chinese telecom companies,&rdquo; notes Morningstar. &ldquo;It put this on hold Jan. 4, 2021 but <a href="https://www.morningstar.com/articles/1017024">reverted to its original plan on Jan. 6</a>. The latest guidance from the OFAC, issued on Jan. 6, explicitly stated three NYSE-listed ADRs and subsidiaries of the military companies were subject to the executive order. As such, we expect that international index providers will make further announcements in the days to come.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Long Ideas

Short Ideas

Emerging Markets

Despite All The Commotion, Delisting Controversy Not Taking Toll On Leveraged China ETF

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The November rally in U.S. equities may be garnering most of the attention (especially as we get closer to having a COVID-19 vaccine) but don&rsquo;t sleep on China.
Among Direxion&rsquo;s stable of leveraged ETFs, two of the five top-performing funds year to date provide magnified exposure to China. Here&rsquo;s a breakdown of what has driven each fund higher.
<h3>Daily CSI 300 China A Share Bull 2X Shares</h3>
The <a href="https://www.direxion.com/product/daily-csi-300-china-a-share-bull-2x-etf?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Direxion Daily CSI 300 China A Share Bull 2X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>) finds itself higher by about 17% over the past month. The ETF, which aims to deliver 200% the daily performance of the CSI 300 Index, has been propelled to its current levels thanks to strength across a surprising array of consumer-driven sectors including financials as well as consumer staples and discretionary stocks.
Standouts within the ETF include China Merchants Bank (Pink: <a class="ticker" href="https://www.benzinga.com/stock/cihky#Pink">CIHKY</a>), higher by about 25% in November, and appliance manufacturers Gree Electric and Midea Group, which both rose about 15% during the month.
Bolstering these and other Chinese A-share equities in the index are strong consumer spending numbers. However, those spending numbers aren&rsquo;t from Chinese consumers. Instead, these A-shares are being supported through strong export numbers to consumer economies outside of China, in neighboring countries like Singapore, Malaysia, and even the U.S. and Europe.
China&rsquo;s own consumers are not so eager to spend, especially as an estimated 9% of its workforce remains unemployed. As a result, much of the country&rsquo;s economic traction is coming from the country&rsquo;s booming export figures, which may diminish if and when the world bounces back from the pandemic.
Nevertheless, the numbers have been an encouraging driver for Chinese stocks at large. And even though exports are the primary economic driver, they&rsquo;re not the only one.
In a dynamic that U.S. investors are very familiar with, companies with large online presences have dominated and become increasingly central to China&rsquo;s economy, as evidenced by the strength in <a href="https://www.direxion.com/product/daily-csi-china-internet-index-bull-2x-etf?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Direxion&rsquo;s Daily CSI China Internet Index Bull 2X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>). Though the trade has cooled off of late, CWEB has still more than doubled in 2020.
That return is the product of fairly consistent growth across most of the country&rsquo;s many internet giants. This of course includes e-commerce powerhouses Alibaba Group Holding Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) JD.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and Meituan-Dianping (Pink: <a class="ticker" href="https://www.benzinga.com/stock/mpngf#Pink">MPNGF</a>), the latter of which has seen massive growth thanks to its online food delivery.
However, the biggest standout among this internet contingent is the recently IPO&rsquo;ed fintech KE Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/beke#NYSE">BEKE</a>), which has surged 72% since its listing in early August. Backed in part by Japan&rsquo;s SoftBank Group Corp (Pink: <a class="ticker" href="https://www.benzinga.com/stock/sftby#Pink">SFTBY</a>), the online property platform has drawn comparisons to Zillow Group Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zg#NASDAQ">ZG</a>) and has ridden on rising enthusiasm in China&rsquo;s economic resilience and sustained growth in boosting the nation&rsquo;s real estate market.
In addition to CHAU and CWEB, <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Daily FTSE China Bull 3X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) (up 15% in the last month) and <a href="https://www.direxion.com/product/daily-msci-emerging-markets-bull-bear-3x-etfs?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Direxion Daily Emerging Markets Bull 3X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>) (up 29%) have also outperformed.
Ultimately, what continues to drive China&rsquo;s growth is its dedication to building itself by investing in public services and utilities like high-speed internet and essential infrastructure to bolster both its manufacturing and technological capabilities. These investments, combined with the allure of its rising middle class, appear <a href="https://www.wsj.com/articles/china-has-one-powerful-friend-left-in-the-u-s-wall-street-11606924454?mod=hp_lead_pos5" style="color:blue; text-decoration:underline">likely to keep Wall Street bullish on China</a> in spite of any geopolitical headwinds.
&nbsp;
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor&rsquo;s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Short term performance is not a good indication of the fund&rsquo;s future performance, and an investment should not be made based solely on returns.
For the most recent month-end and standardized performance <a href="https://www.direxion.com/etfs?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">click here</a>
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Market Disruptions Resulting from COVID-19.&nbsp;The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.
CUSIP Identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standard and Poor&rsquo;s Financial Services, LLC, and are not for use or dissemination in any manner that would serve as a substitute for a CUSIP service. The CUSIP Database, &copy; 2011 American Bankers Association. &ldquo;CUSIP&rdquo; is a registered trademark of the American Bankers Association.
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The CSI 300 Index (&ldquo;Index&rdquo;) is calculated by China Securities Index Company (&ldquo;CSI&rdquo;). CSI does not make any warranties, express or implied, to any of their customers or anyone else regarding the accuracy or completeness of any data related to the Index. All information is provided for information purposes only. CSI accepts no liability for any errors or any loss arising from the use of information.
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Direxion Shares Risks&nbsp;&ndash;&nbsp;There are special risk considerations relating to Stock Connect Program and RQFII and QFII investors and the Chinese A-Share market. The Stock Connect Program is subject to daily and aggregate quota limitations, and an investor cannot purchase and sell the same security on the same trading day, which may restrict the other funds&rsquo; or counterparties&rsquo; ability to invest in A-Shares through the Stock Connect Program and to enter into or exit trades on a timely basis. A-shares are issued by companies incorporated in the People&rsquo;s Republic of China (&ldquo;PRC&rdquo;). The A-share market in China is made available to domestic PRC investors and certain foreign investors, including those foreign investors that have been approved as Renminbi Qualified Foreign Institutional Investors (&ldquo;RQFII&rdquo;) or as Qualified Foreign Institutional Investors (&ldquo;QFII&rdquo;). The Fund&rsquo;s ability to achieve its inverse investment objective is dependent on the ability of other ETFs and counterparties to obtain their QFII or RQFII quota. If the Fund is unable to obtain sufficient exposure to the Index due to the limited availability of necessary investments or financial instruments, the Fund could, among other things, as a defensive measure, limit or suspend creation units until the adviser determines that the requisite exposure to the Index is obtainable. During the period that creation units are suspended, the fund could trade at a significant premium or discount to its NAV and could experience substantial redemptions.
Risks associated with investments in Chinese companies include, among others,&nbsp;(i) the small size of the market for Chinese securities and low trading volume, resulting in a lack of liquidity and in price volatility; (ii) currency devaluations and other currency exchange rate fluctuations or blockages; (iii) the nature and extent of intervention by the PRC government in the Chinese securities markets, whether such intervention will continue and the impact of such intervention or its discontinuation; (iv) the risk of nationalization or expropriation of assets; (v) the risk that the PRC government may decide not to continue to support economic reform programs; (vi) limitation on the use of brokers; (vii) higher rates of inflation; (viii) greater political, economic and social uncertainty; (ix) market volatility caused by potential regional or territorial conflicts or natural disasters and; (x) the risk of increased trade tariffs, embargoes and other trade limitations. These factors can directly affect A-shares, and may indirectly affect investments that derive their value from A-shares. Any reduction or elimination of access to A-shares will have a material adverse effect on the ability of the fund to achieve its investments objective.
Risks of the Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Leverage Risk, Market Risk, Market Disruption Risk, Aggressive Investment Techniques Risk, Counterparty Risk, Intra-Day Investment Risk, Daily Index Correlation/Tracking Risk, Other Investment Companies (including ETFs) Risk, and Emerging Markets Risk. Investing in, and/or having exposure to, emerging markets instruments involves greater risks than investing in issuers located or operating in more developed markets. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
Direxion Funds Risks&nbsp;&ndash; An investment in the Funds involves risk, including the possible loss of principal. The Funds are non-diversified and include risks associated with concentration risk which results from the Funds&rsquo; investments in a particular industry or sector and can increase volatility over time. Active and frequent trading associated with a regular rebalance of a fund can cause the price to fluctuate, therefore impacting its performance compared to other investment vehicles. For other risks including correlation, compounding, market volatility and specific risks regarding each sector, please read the prospectus.
Distributor for Direxion Shares:&nbsp;Foreside Fund Services, LLC.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

General

BEKE

CHAU

CIHKY

CWEB

Direxion Daily Emerging Markets Bull 3x Shares

MPNGF

SFTBY

Wall Street Remains Bullish On China

The following was originally published on <a href="https://www.capitalwatch.com/article-6019-1.html">Capital Watch.</a> Some edits have been made
&quot;Will this be the day when investors sell-off and take some profits?&quot;
&quot;How long can the market remain divorced from all economic reality?&quot;
&quot;Will Spotify become the next Apple because it now offers podcasts?&quot;
&quot;And speaking of Apple, I know almost all of us said it was overvalued when the stock fell in March but now will it ever fall?
So say market experts&hellip;every single day.
While companies like Spotify (I bought at the recent dip) and other stay-at-home tech stocks will keep rising, the bulls will sell eventually. There is a tech bubble and it will burst, or at least deflate. To wit, Facebook Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) has barely budged despite advertisers leaving in droves at Zuckerberg&#39;s intransigence to demands by civil rights leaders insisting he curbs hate speech on his platform. Whether motivated by pure arrogance or a firm commitment to the principle of free speech on his platform, Zuckerberg&#39;s business sense will prevail in the end.
Facebook, Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), Netflix Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>), Alphabet Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>), and often included, Microsoft Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), will not see their F.A.A.N.G.s recede anytime soon. For all Warren Buffet&#39;s mistakes this year, Apple stock makes up more than half of his stock portfolio. I will continue to be long on Apple until there is a vast change in consumer behavior. Even when the world crumbles at our feet, we will take a video&nbsp;said&nbsp;Armageddon with&nbsp;our iPhone 23S.&nbsp;&nbsp;
Yes, buy Shopify Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shop#NYSE">SHOP</a>) and Spotify (SPOT) and yes, they will go down, but if they do, just sell fast or hold long-term. Spotify&#39;s foray into podcasting is not a joke and will help drive growth long-term.&nbsp;
UPS? Sure, buy it. FedEx&#39;s earnings should bode well for UPS, whose stock (UPS) should move upwards after it releases its own earnings on July 22.&nbsp;
China in a Bull Shop
As one Chinese retail investor in a Bloomberg piece said this week, &quot;I can&#39;t lose.&quot; Well, lose they did the last time the Chinese stock market raucously rallied in 2014, losing $5 trillion nearly overnight.
In the last couple of weeks, Chinese indexes added $1 trillion in value spurred on by individual retail investors leveraging like crazy after receiving encouragement from Beijing. Chinese regulators are already panicked over the frenzy, but Goldman Sachs says the bull has more room to run. And while there will be hills and valleys, I see a long-term bull market in China for the next few years.
You can buy an ETF, but I would just go to back to the BAT stocks and also add Vipshop Holdings Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vips#NYSE">VIPS</a>),&nbsp;Baozun Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bzun#NASDAQ">BZUN</a>),&nbsp;Tencent Holding (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>),&nbsp;New Oriental Education&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edu#NYSE">EDU</a>), Pinduoduo Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pdd#NASDAQ">PDD</a>), GSX Techedu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gsx#NASDAQ">GSX</a>)&nbsp;and leverage away. GSX is likely another lying Luckin, but who cares short term? I was late to the party but got &quot;in&quot; Monday at $66, &quot;out&quot; at $86.&nbsp;
You can also ride the dragon by betting on it or against it with the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and/or the&nbsp;Direxion Daily FTSE China Bull 3X Shares&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). The 3X Shares ETF seeks daily investment results, before fees and expenses, of 300%, or 300% of the&nbsp;inverse&nbsp;(or opposite), of the performance of the FTSE China 50 Index.&nbsp;
CapitalWatch Disclaimer
The opinions expressed in this article do not reflect the position of CapitalWatch or its journalists. The analyst has no business relationship with any company whose stock is mentioned in this article. Information provided is for educational purposes only and does not constitute financial, legal, or investment advice.

Opinion

BZUN

New Oriental Education & Technology Group

GOOGL

NFLX

Citigourp Global Markets 2% Protected Notes Linked To The Djia

SHOP

TCEHY

VIPS

Your Week In Brief: Welcome To Groundhog Day.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The FTSE China 50 Index jumped 9.50% on Monday and the basic exchange traded fund tracking that index followed suit on volume that was more than double the daily average.
That&#39;s an impressive move for an index that allocates 46% of its weight to bank stocks and one that confirms that despite all the coronavirus controversy, China is one of <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/06/16327893/3-china-etfs-hitting-new-highs">best-performing major equity</a> markets in the world this year.
Big rallies in short time frames with Chinese stocks have a way of fostering doubt and while it remains to be seen if this time is different, there could be more to had over the near-term with Chinese equities.
&ldquo;While some strategists are cautious about fundamentals and other risks, investor momentum, strong economic data, and supportive policies could give the rally, especially in domestic A-share stocks, further legs, at least for a bit,&rdquo; <a href="https://www.barrons.com/articles/chinas-stocks-are-on-a-tear-can-they-keep-going-51594062360?mod=hp_FUNDS&amp;refsec=funds">reports Barron&#39;s</a>.
Traders looking to capitalize on more near-term upside, emphasis on &ldquo;near-term,&rdquo; the following leveraged exchange traded funds are worth considering.
<h3>Direxion Daily FTSE China Bull 3X Shares (YINN)</h3>
The Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) attempts to deliver <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs">triple the daily results</a> of the aforementioned FTSE China 50 Index. In other words, if a trader is looking for a geared bet on Chinese banks with some Tencent (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) sprinkled in, YINN is the way to go.
Yes, YINN&#39;s underlying index is prosaic in its approach to Chinese stocks, but that doesn&#39;t diminish the fund&#39;s ability to deliver near-term excitement. On Monday, YINN surged 28.46% on volume that was more than triple the daily average.
<h3>Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB)</h3>
The Direxion Daily CSI China Internet Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>) looks to deliver <a href="https://www.direxion.com/product/daily-csi-china-internet-index-bull-2x-etf">double the daily returns</a> of the CSI Overseas China Internet Index, giving traders a geared option on a group of equities that are leading the China rally.
Tencent, Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) and JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) combine for more than 28% of that index. Data confirm online shopping and e-commerce are rebounding in China after being dented by the coronavirus earlier this year.
&ldquo;The number of unique visitors to online shopping sites has improved 5% from the low in February and insurance premiums have resumed growth,&rdquo; according to Barron&#39;s.
CWEB is up almost 43% over the past month.
<h3>Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU)</h3>
The Direxion Daily CSI 300 China A Share Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>) is the dominant name among geared ETFs with exposure to A-shares, the stocks trading on mainland China. While it&#39;s a double-leveraged fund, that&#39;s enough for some excitement as was seen on Monday when CHAU surged nearly 23% on more than six times the average volume.
What&#39;s potentially compelling about A-shares over the near-term is that the rally in the group is, in large part, being facilitated <a href="https://www.shine.cn/biz/finance/2007061583/">by an influx</a> of foreign capital.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

3 Exciting China ETFs For A Hot Summer

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Imagine a world where Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) doesn&#39;t trade in the U.S. If some senators have their way, Chinese stocks would either be booted from U.S. exchanges or subject to significantly more scrutiny.
<h3>What Happened</h3>
On Wednesday, the Senate easily passed a bill that would forbid the likes of Alibaba, JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and scores of other Chinese companies from listing in the U.S. &ndash; a political push that could put the spotlight on leveraged exchange-traded funds such as the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>).
The bullish YINN attempts to deliver <a href="https://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, which contains Hong Kong-listed Chinese firms, several of which also trade in New York.
<h3>Why It&#39;s Important </h3>
It may seem far flung that Chinese companies will be barred from trading in the New York, but in the wake of the Luckin Coffee fiasco and increasing tensions between the world&#39;s two largest economies, the aforementioned Senate bill enjoys bipartisan support, a rarity on Capitol Hill.
&ldquo;If a company can&rsquo;t show that it is not under such control or the Public Company Accounting Oversight Board isn&rsquo;t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company&rsquo;s securities would be banned from the exchanges,&rdquo; <a href="https://www.bloomberg.com/news/articles/2020-05-20/senate-passes-bill-to-delist-chinese-companies-from-exchanges">according to Bloomberg</a>.
For now, markets don&#39;t appear convinced the bill will be signed into law as the bullish YINN gained 3.67% on Wednesday.
<h3>What&#39;s Next </h3>
While odds are currently long on the bill&#39;s passage, that could be a case of market&#39;s underestimating the legislation&#39;s practicality.
Not only does President Trump not shy away from heavy-handed stances against China, but the bill&#39;s authors &ndash; Sen. John Kennedy (R-LA) and Chris Van Hollen (D-MD) &ndash; are pragmatic in their approach. That could bode well for the bill&#39;s fate and YANG&#39;s play on its passage.
Kennedy said the aim isn&#39;t to start a rift with China. He merely wants Chinese public companies trading in the U.S. to be held to the same standards as their American counterparts.
&ldquo;Publicly listed companies should all be held to the same standards, and this bill makes common sense changes to level the playing field and give investors the transparency they need to make informed decisions,&rdquo; said Van Hollen in a press release.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Politics

China Delisting Bill Could Put These Geared ETFs Into Gear

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Broadly speaking, emerging markets a mess this year and the coronavirus is just one reason. What&#39;s interesting about that scenario is that China &ndash; previously the epicenter of the virus &ndash; is outperforming broader developing world benchmarks.
<h3>What Happened</h3>
For example, the FTSE China 50 Index is performing 700 basis points less poorly this year than the MSCI Emerging Markets Index and while some bearish <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/05/16028572/3-bearish-etfs-to-profit-bullish-counterparts-with-elevated-short-interest">emerging markets ETFs look attractive</a>, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) could be worth a look for risk-tolerant, short term traders.
YINN tries to deliver <a href="http://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the aforementioned FTSE China 50 Index, a collection of the largest Chinese companies with Hong Kong listings.
Why It&#39;s Important 
While the following are longer-ranging factors, they do bode well for the near-term case for YINN: Chinese stocks, broadly speaking, are profitable and less expensive than their U.S. counterparts.
&ldquo;U.S. stocks may score higher on profitability than their Chinese counterparts, but they are also much more expensive,&rdquo; <a href="https://www.blackrockblog.com/2020/05/14/three-reasons-to-like-chinese-stocks/">according to BlackRock</a>. &ldquo;Chinese equities trading on the Shanghai exchange are valued at roughly 11x FY1 earnings. Companies listed on Hong Kong&rsquo;s exchange are trading at slightly above 8x earnings.&rdquo;
As YINN itself is recently showing, there&#39;s something to the &ldquo;first in, first out&rdquo; notion, meaning China was the first to be hit by the coronavirus and it&#39;s the first major economy to emerge from the virus&#39;s wrath.
&ldquo;As China was the first country to be devastated by the virus, it is also the first to start to recover. While investors should always be a bit skeptical of Chinese economic data, there are credible signs that their economy is slowly beginning to improve,&rdquo; adds BlackRock. &ldquo;Currently China is about the only place in the world where manufacturing surveys are positive, indicating a tepid expansion.&rdquo;
<h3>What&#39;s Next</h3>
As is always the case with any leveraged ETF, there&#39;s no free lunch with YINN. President Trump is none too pleased with China and is renewing trade deal threats. It&#39;s clear there&#39;s strain on US/China ties with the White House framing that stress around COVID-19.
&ldquo;What was originally a trade dispute with the United States has metastasized into a broader strategic conflict, a conflict now inflamed by questions around China&rsquo;s handling of the early stages of the crisis,&rdquo; said BlackRock.
Should tensions manifest into equity market downside, YINN&#39;s bearish cousin &ndash; the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) &ndash; becomes appealing.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Why This Adventurous China ETF Is Worth A Look

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
China is widely viewed as the epicenter of the coronavirus and, predictably, that status is affecting Chinese equities, but not by as much as investors may suspect.
<h3>What Happened</h3>
The COVID-19 pandemic struck the world&#39;s largest country by population in earnest in January, forcing stocks there lower. However, Chinese equity markets have been surprisingly resilient over the past couple of months, potentially presenting investors opportunity with the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>).
YINN is designed to deliver <a href="http://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index (TXIN0UNU), a collection of the 50 largest Hong Kong-listed Chinese firms.
<h3>Why It&#39;s Important </h3>
Year-to-date, the FTSE China 50 Index is lagging the S&amp;P 500 by 240 basis, but the Chinese benchmark is performing far less worse than the MSCI Emerging Markets Index. Plus, over the past three months, the China index has been about half as bad as the S&amp;P 500 and 1,000 basis points better the MSCI benchmark.
&ldquo;Media headlines outdid each other in broadcasting China&rsquo;s 6.8% contraction in GDP in the first quarter this year,&rdquo; a <a href="https://www.forbes.com/sites/yuwahedrickwong/2020/04/19/chinas-unprecedented-gdp-contraction-opens-the-opportunity-for-sweeping-reforms/#2372fcbc1652" target="_blank">Forbes report</a> noted. &ldquo;It was indeed breaking news in that it was the first-ever contraction since China started reporting quarterly GDP data in 1992. However, beyond the headlines, there is surprisingly little that is newsworthy. It is not telling us anything we didn&rsquo;t know already.&rdquo;
The issue confounding the near-term opportunity set for YINN &ndash; and to be sure, this is a near-term instrument &ndash; is by how much the Chinese economy will rebound in the current quarter and how large the contributions to that recovery will be derived from bank stocks. Financial services account for 46% of the Direxion fund&#39;s underlying index.
<h3>What&#39;s Next </h3>
Some analysts expect industrials will contribute to a Chinese economy recovery, one that will be spurred by reduced lagging from the energy and technology sectors. Those groups combine for about 10% of YINN&#39;s index.
&ldquo;Call it a case of first in, first out. Despite the distinction of being the initial epicenter of the now global coronavirus outbreak, China&rsquo;s equity market suffered far less than both the emerging and developed indexes in the March downdraft and for the year so far,&rdquo; said Philip Lawlor, FTSE Russellmanaging director for global markets research <a href="https://www.ftserussell.com/blogs/index-idea-china-has-fared-best-2020-covid-19-global-equity-market-stall">in a recent note</a>. &ldquo;We see two key drivers behind Chinese equity outperformance year-to-date; a rebound in Chinese manufacturing data and much more muted underperformance in the industrial, technology, oil &amp; gas and financial sectors relative to other markets.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

It Might Be Time To Get Sporty With A Geared China ETF

The standoff between the U.S. and China seems to be reaching a tipping point.
Even as <a href="https://www.benzinga.com/government/19/09/14421387/trump-tariff-delay"> trade tensions </a> between the&nbsp;two nations have been roiling the markets and economy for a while, the U.S. is reportedly considering an additional step.&nbsp;
As part of a plan to limit U.S. investments in China, the White House is considering blocking all U.S. financial investments in Chinese companies, <a href="https://www.cnbc.com/2019/09/27/white-house-deliberates-block-on-all-us-investments-in-china.html">CNBC </a> reported Friday,&nbsp;citing a source familiar with the matter.
Additionally, the White House is also looking at possibilities of limiting the investment of U.S. government pension funds in Chinese equities.
The plan is reportedly in the conception stage, with no concrete details finalized,&nbsp;including the timeframe for enaction.&nbsp;
<h3>China Shares, ETFs Nosedive</h3>
U.S.-listed Chinese equities took a tumble on the news.&nbsp;
Chinese e-commerce giant Alibaba Group Holding Ltd &ndash; ADR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) was last seen sliding 5.39% to $165.57.
Chinese search engine Baidu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) was losing 3.67% to $101.21. NetEase Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntes#NASDAQ">NTES</a>) shares were slipping 5.79% to $257.52, and JD.Com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) was losing 5.98% to $27.81.
OTC-listed TENCENT HOLDING/ADR (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) was slipping 3.02% to $40.72.
China ETFs were also in a sea of red, with the DIREXION SHS ET/DAILY FTSE CHINA BU (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>), iShares FTSE/Xinhua China 25 Index (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fxi#NYSE">FXI</a>) and the ISHARES TR/MSCI CHINA ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mchi#NASDAQ">MCHI</a>) losing 4.28%. 1.53%&nbsp;and 2.52%, respectively.
<h3>Pressure Tactics?</h3>
As the reported move comes ahead of the resumption of the U.S.-China trade talks Oct. 10 in Washington, D.C., it is seen as a step by the U.S. to take control of the negotiation.
The two parties have locked horns with each other over the trade issue, engaging in verbal warfare and imposing sanctions on billions of dollars&#39; worth of each other&#39;s goods. After several start-stop attempts, there has been a prolonged stalemate in negotiations.
Separately,&nbsp;<a href=" https://www.bloomberg.com/news/articles/2019-09-27/white-house-weighs-limits-on-u-s-portfolio-flows-into-china-k12ahk4g">Bloomberg </a> also reported a potential move to stall U.S. portfolio investment flows into China and delist Chinese stocks from U.S. exchanges.
As of February, about 156 Chinese companies with a total market cap of $1.2 trillion were listed on the main U.S. exchanges, <a href="https://www.ft.com/content/a263d2c6-e13e-11e9-9743-db5a370481bc">the Financial Times reported</a>, quoting the U.S.-China Economic and Security Review Commission.
These measures couldn&#39;t have come at a worse time for China, as it is opening up its market for foreign investment.
<h3>Curbs Likely On Inbound Investments</h3>
Earlier this month, the U.S. Treasury proposed&nbsp;regulations that would give the Committee On Foreign Investment In the U.S., or CFIUS, more power to prevent foreign investment in&nbsp;areas where protection is needed. The law will&nbsp;take effect next year.
The regulations were drawn up to prevent China investing in U.S. technology and other valuable assets.
Even as the markets deliberate the pros and cons of these moves, the standoff between the world&#39;s first- and second-largest economies is bound to have ramifications for not only these two nations, but also for the global economy at large.
Related Links:
<a href="https://www.benzinga.com/news/19/09/14436631/china-suffers-two-blows-high-oil-prices-lowest-industrial-output-since-2002">China Suffers Two Blows: High Oil Prices, Lowest Industrial Output Since 2002 </a>
<a href="https://www.benzinga.com/news/19/09/14435775/details-emerge-on-apples-iphone-strategy-in-china">Details Emerge On Apple&#39;s iPhone Strategy In China </a>

Media

BIDU

MCHI

NTES

Chinese Stocks Slump As US Reportedly Weighs Options To Block Investments

Geopolitical events and the related headlines are often the ideal catalysts for leveraged regional and single-country exchange traded funds. With the G-20 summit looming, the time could be right for the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>).
<h3>What Happened</h3>
President Donald Trump and Chinese President Xi Jinping will meet at the G-20 summit in Japan, a get together that is widely expected to bring much <a href="https://investorplace.com/2019/06/dow-jones-today-steady-but-some-patches-of-excitement/">anticipated relief</a> to the trade tensions between the world&#39;s two largest economies.
&ldquo;What remains far more crucial about this meeting is whether it helps steer the increasingly complex relationship back on a familiar course or whether it stirs winds and currents that sweep us further off into uncharted waters,&rdquo; <a href="https://www.barrons.com/articles/dow-jones-industrial-average-fell-as-trump-xi-meeting-may-be-more-than-trade-51561497144?mod=hp_BRIEF&amp;mod=article_inline" target="_blank">according to a recent note</a> by Christopher Smart of the Barings Investment Institute.
YANG attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, a popular gauge of Chinese large caps trading in Hong Kong.
<h3>Why It&#39;s Important </h3>
Ahead of the G-20 meeting, there have some signs traders are betting on a favorable outcome and are using the triple-leveraged YANG to make those bets.
On Tuesday, YANG saw inflows of $2.45 million, a total exceeded by just seven other Direxion leveraged ETFs, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>. That brought YANG&#39;s five-day inflow total to $4.80 million, good for seventh-best among Direxion&#39;s leveraged funds.
YANG&#39;s underlying index allocates over 45% of its weight to financial services stocks, but the fund has adequate leverage to some tariff-sensitive sectors, including communication services, consumer discretionary and technology.
<h3>What&#39;s Next</h3>
Given his penchant for harsh rhetoric aimed at China, President Trump could find the meeting with Xi not to be to his liking and talks deteriorate from there. Not saying that is going to happen, but traders can make that bet with YANG&#39;s bearish counterpart, the Direxion Daily FTSE China 3X Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>). YINN tries to deliver triple the daily inverse returns of the FTSE China 50 Index.
In what may prove to be a positive sign, there has not recently been much in the way of unusual activity in the bearish YINN, according to Direxion data. YINN is up nearly 2% this week.
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Ahead Of G-20 Summit, Leveraged China ETF Stirs

These should be go-go days for leveraged China exchange-traded funds, and they are. As the U.S. and China, the world&#39;s two largest economies, continue grappling over trade, some traders are enjoying the ride offered by the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) or profiting from shorting the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>).
<h3>What Happened</h3>
The bullish YINN attempts to deliver triple the daily returns of the FTSE China 50 Index (TXIN0UNU), a widely followed gauge of Chinese large-cap stocks listed in Hong Kong; while the bearish YANG seeks results that correspond with<a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf"> triple the daily inverse performance</a> of that index.
In the current environment, it is not surprising that YINN is getting drubbed while YANG is surging. On Monday, YINN plunged 10 percent on above-average volume, extending its one-week loss to just over 21 percent. Conversely, the bearish YANG surged 10 percent on volume that was more than triple the daily average. YANG is up almost 24 percent over the past week.
<h3>Why It&#39;s Important </h3>
So with YINN tumbling and YANG soaring, it would be reasonable to expect that traders are chasing the latter while avoiding the former. Actually, data suggest the opposite is true. Over the trailing one-, five- and 10-day periods entering Monday, the bullish YINN was among the top 10 asset gatherers among <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">Direxion&#39;s leveraged ETFs</a>.
Last Friday, traders added $24 million to YINN, a total surpassed by just two other leveraged Direxion ETFs. That brought YINN&#39;s five- and 10-day inflows totals to $37.22 million and $82.87 million, respectively. Over those 10 days, YINN&#39;s inflows equaled 21.80 percent of the fund&#39;s total assets, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>.
On the other hand, traders are taking profits in the bearish YANG. Over the aforementioned one-, five- and 10-day periods, YANG was a top five offender in terms of assets lost among Direxion&#39;s leveraged ETFs. For the 10 days ending May 10, YANG saw departures of $20.72 million, the equivalent of 24.40 percent of the fund&#39;s total assets, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to Direxion data</a>.
<h3>What&#39;s Next </h3>
As for what is next, the longer Chinese stocks slide, it is possible traders will continue tempting fate with the bullish YINN. A rebound in Chinese stocks is not likely to be advertised, but when it happens, YINN could easily deliver double-digit intraday gains, but waiting for that day could prove risky for some traders.
Related Links
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13689318/time-for-these-china-etfs-to-shine">Time For These China ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13689527/an-avenue-for-small-cap-promise-relatively-speaking">Consider This Small-Cap ETF</a>

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