On Monday, we noted that CHAU could be poised for big near-term gains because ASHR was trading at a steep discount to its net asset value. There is more to CHAU’s story that indicates significant upside could be ahead. To quantify that upside, it would not be unreasonable to expect CHAU to run 15% to 16% to the upside, maybe more, when A-shares rebound. Here’s why: ASHR was spotted Monday trading at a significant discount to its net asset value. Add to that, CHAU could be gain a “rebate” as counterparties continue to loan shares of ASHR out to short sellers. [Leveraged A-Shares ETF Could Tempt]
Through Wednesday, CHAU has seen almost $4 million in inflows. To be sure, traders are not shying from bearish leveraged China funds, either.
While YINN looked great with its $20.7 million in Wednesday, the Direxion Daily FTSE China Bear 3X Shares (NYSEArca: YANG) added $15.8 million in new assets yesterday, more than any other triple-leveraged bear ETF from Direxion.
CHAU’s inverse cousin, the Direxion Daily CSI 300 China A Share Bear 1x Shares (NYSEArca: CHAD), arguably the epitome of a “right place, right time” ETF, has added $21.6 million in new assets just this week. That brings CHAD’s AUM total to the $190 million area, an impressive sum for an ETF that is not yet a month old. Even with Thursday’s 19% loss, CHAD is still up 22.2% since coming to market.
Direxion Daily CSI 300 China A Share Bull 2X Shares
