Asia’s Favorite Trade Goes Wrong-Way

Where'd the money come from? What was the source of funds for Monday's pre-holiday buying bonanza in Chinese equities? Some of it probably came from mainland deposits, on which rates were falling as financial institutions struggled to preserve margins amid the PBoC's string-pushing rate cuts. Some of it came from Chinese bonds, yields on which recently touched a succession of record lows as traders and speculators (a distinction without a difference) bet on deflation. Some of it was good ol' fa