China Shorts Can't Cover Margin Calls After Biggest One-Day Faceripper Since Lehman

Even though the rest of Asia had a very difficult session, with Japanese stocks tumbling more than 3% (on a delayed reaction to the jump in the yen which surged after hawkish Shigeru Ishiba’s victory wrongfooted investors, forcing them to pare positions that had been built on speculation that dovish Sanae Takaichi would become the nation’s new prime minister and encourage the Bank of Japan to keep interest rates low) while those in Taiwan and Korea fell more than 2% after declines in US tech shares on Friday, China was in a world of its own.

Perhaps listening to David Tepper last week, who said that he is plowing capital into China so aggressively he is even removing his limits, “I have limits, historic limits. I probably said a long time ago, I don’t go above 10% or 15%. Well, that’s probably not true anymore"...