Here is another one I heard from the same guy:

WC was practised by many “Hong Shune” (Red Boat) people, who were Chinese opera troupes that travelled from town to town along the rivers of south of China.

They often practised and fought on the deck of a small boat so they have to adopt their peculiar stance to maintain upright while the boat rocked from side to side.

Many of the “Hong Shune” workers were gay guys (all the female parts were played by man) so it was fashionable to adopt a female stance of seemingly protecting the genital region while facing your opponent front on – a kind of Kung Fu tease.

I know this sounds a little bit ridiculous but it makes a good yarn, so please don’t get hot under the collar about it. No insult, attack or sexism of any kind is intended. Feel free to make a joke out of this.