Direxion Dly CSI 300 CHN A Shr Bl 2X ETF (CHAU)
CHAU Price and Sentiment
CHAU Latest news
Shares in China continue to post sharp year-to-date losses vs. an otherwise upside bias for global stocks, based on a set of exchange-traded funds tracking the world's major equity regions through yesterday's close (Aug. 25). Some investors see opportunity in beaten-down shares, but there's still a wide-ranging debate as the market prices in higher uncertainty driven by the vagaries of Beijing's evolving policy agenda.
The crash was triggered by new regulations in the booming private education industry. Beyond private education, investors fear that large swaths of high-growth sectors that were market darlings in recent years could be vulnerable to government action.
We highlight a few leveraged ETFs that shot up last week.
Flows into China-focused ETFs are surging as investors position for China's growing economic and financial strength. Non-Chinese investors are generally overlooking China's growing influence on the global economy and in capital markets.
China currently represents just 5% of the MSCI All Country World Index (ACWI) while the US represents 58%. Since the beginning of 2020, the MSCI China A Index has outperformed the CSI 300 Index by 561 basis points, as shown in Figure 2.
Last week was slightly downbeat for Wall Street on talks of a capital gain tax hike.
Last week was marked by the bitcoin rally, some Reddit bets and an uptrend in some cyclical sectors.
Wall Street saw a mixed performance last week probably because of rising COVID-19 cases globally while a stimulus deal cheered up the market.
Traders understand that when you add leverage to the mix, the results can be explosive gains, but on the flip side, it could be losses and a blown trading account. Yahoo Finance focused on top leveraged ETF performers and three of the funds featured Direxion Investments products.
This year has witnessed historic twists and turns with the largest bull market turning into a bear market in March on the coronavirus outbreak, and then marking the fastest-ever recovery.