Chinese ETF traders saw massive gains as Beijing's expanded stimulus plans sparked market rally.

From Nasdaq: 2024-12-09 14:28:01

Traders who bet on small, leveraged Chinese ETFs like YINN and CHAU saw massive gains as Chinese equities rallied. YINN surged 29% and CHAU jumped 16% on Monday, driven by Beijing’s plans for expanded monetary stimulus in 2025. Nearly $225 million in call options resulted in $138 million in paper profits.

Large purchases of long-dated options on YINN and CHAU began on Nov. 29, reflecting optimism over China’s shift to a more accommodative monetary strategy. Analysts expect interest-rate cuts and fiscal measures to boost the economy, potentially reigniting interest in Chinese assets after years of underperformance.

The latest economic signals from China have reignited enthusiasm for its markets, rewarding early traders who bet on policy shifts. Evercore ISI analysts anticipate strong fiscal support for China’s economy, setting the stage for sustained investor engagement with Chinese equities in 2025. Speculative positions in leveraged ETFs like YINN and CHAU demonstrate growing confidence in China’s recovery.



Read more at Nasdaq: China’s Stimulus Fuels $138 Million Paper Gains for ETF Traders