$Direxion FTSE China Bear 3X(YANG.US) rose about six points, while at the same time $EFUND HKEX TECH 100 ETF(03456.HK) was falling. A leveraged tool that shorts China surged, while a long-only China tech ETF weakened, perfectly aligning in direction. This indicates that capital is bearish on China concept stocks: when Hong Kong tech stocks weaken, the short side amplifies its gains. Is this bearishness a short-term emotional release, or is it the start of a new downtrend for China concept stocks? I bet on the former—the surge in a 3x short tool is mostly driven by sentiment. China concept stock valuations are already low, leaving limited room for systematic bearishness.