China's economy faces challenges including a slow reopening, weak manufacturing indicators and a struggling real estate sector. The reopening of the Chinese economy is a key theme for global markets in late 2022 and early 2023. There are high hopes that the reopening will boost global demand as Chinese consumers use up their savings during the lockdown. However, recent economic data suggests the opposite is the case.

Thus, Tuesday's data released by the National Bureau of Statistics (NBS), which came on top of already concerning indicators from last week, showed retail sales, industrial output and investment were all growing at a slower than expected pace. Real estate investment, which had its worst year on record in 2022, declined by 7.9% in the first six months of 2023. Also, the latest China’s official PMI data signals a weaker Chinese economy going forward, with manufacturing, new factory orders, and new export orders all experiencing certain constraints.

The Direxion Daily FTSE China Bull 3x Equity ETF aims to provide a daily triple of the performance of the FTSE China 50 Index. YINN is a leveraged ETF, making it more suitable for short-term trading rather than long-term investing. It is important to understand that YINN is a leveraged ETF. This means it carries a higher risk compared to traditional funds. The use of leverage magnifies potential gains and losses, making YINN more suitable for short-term trading than long-term investing and should be avoided for now, until a clearer Chinese economic picture will form.