Investor closes short on leveraged China ETF, prefers unlevered or solid Chinese stocks instead

Ian Bezek has closed his short position on the leveraged Direxion Daily FTSE China Bull 3x ETF (YINN) and is now neutral on it. Despite China's undervaluation and improving macroeconomic conditions, the ETF's leveraged nature presents long-term risks. Many Chinese companies offer limited shareholder returns, making equities a potential value trap. Bezek suggests bullish investors consider unlevered ETFs or individual Chinese stocks with strong fundamentals for safer exposure.