7 Things to Know about China’s Bond Rout

China’s bond market, which boomed for three years, seemed to have hit a tipping point in December, with many traders saying it was “the darkest time ever.” One obvious cause was the U.S. Fed predicting more-than-expected rate hikes next year, which would lead to more capital flows out of China. But a few domestic factors paved the way for the big rout that shocked the market.

What may have triggered the rout?