Buy on the dip.

Okay, we said it. It’s no secret Asia Unhedged is a bull on Chinese stocks. But with the Chinese markets up 140% over the past 12 months and 50% this year alone, hitting a seven-year high just this week, even we can see there needs to be a bit of a pull back.

And here it is.

China’s stock markets plummeted Thursday on record volume after brokers tightened the margin trading requirements for clients and the central bank drained money market liquidity.

“The brokerages are front running what the regulator wants to do,” Bernard Aw, an analyst at ING Markets in Singapore,