YANG ETF

Economic news coming out of China will certainly add a heavy dose of volatility to its equities. That should open the door for traders to maximize their profit potential in China stocks using leveraged and inverse ETFs from Direxion.

The VelocityDRIVE Software Platform enables switch-management communication based on standardized YANG models The VelocityDRIVE Software Platform enables switch-management communication based on standardized YANG models

China's regulatory crackdowns, tensions with the US, and slowing economic growth create risks for investors in China's equity markets. Direxion Daily FTSE China Bear 3X Shares is a fund to avoid due to the risks involved in shorting and its leverage of -300%. YANG uses swaps to achieve its inverse daily performance and allows investors to profit from declines in the Chinese market, but it comes with the risk of magnified losses and compounding sequences.

Worsening deflation is putting the Direxion Daily FTSE China Bull 3X ETF (YINN) in bear mode. With YINN down 25%, traders can take the other side with the Daily FTSE China Bear 3X Shares (YANG).

The Chinese government is injecting a dose of stimulus measures to try and revive economic growth. That should bode well for the Direxion Daily FTSE China Bull 3X ETF (YINN) if a recovery happens sooner rather than later.

Chinese stocks are expected to decline significantly due to geopolitical tensions with the USA, a bursting real estate bubble, and global recession risk. Buying the Direxion Daily FTSE China Bear 3X Shares ETF is recommended to profit from the decline in Chinese stocks. YANG is a triple inverse ETF that seeks to return 3x the inverse of the daily return of the FTSE China 50 Index.

Bearish China traders have had the upper hand for most of the year. Still, easing deflation could give bulls a glimmer of hope.

A Goldman Sachs report noted “aggressive” selling in Chinese equities by hedge funds, citing concerns over the second-largest economy's growth trajectory. It appears China still has yet to shake off the effects of a real estate development crisis that came to the forefront when the Evergrande Crisis hit, resulting in an $81 billion loss.