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


Direxion Daily FTSE China Bull 3X Shares (NYSE: YINN) and Direxion Daily FTSE China Bear 3X Shares (NYSE: YANG) are ETFs tracking the direct or inverse results of the FTSE China 50 Index by 300% and have experienced high levels of volatility over recent weeks.

The increasing volatility began on Feb. 23 following Russia’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 new wave 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 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’s crackdown on its native companies. Alibaba Group Holdings Ltd – ADR (NYSE: BABA), the second-largest holding 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 said it would 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 …

Full story available on Benzinga.com