Chinese Stock Short Squeeze Stalls After IMF Delays Decision On Yuan SDR Inclusion

Yesterday afternoon's meltup short-squeeze in China - after regulators announced their latest restrictions on short-selling - has stalled in the early trading tonight following The IMF's decision to delay inclusion of Yuan in the SDR pending a review in September 2016. Though this will be a disappointment to the Chinese, the door is still open though given waringse from BMW and Toyota over "normalizing" auto sales, the market problems may be morphing quickly into economic problems.

Chinese stocks see a modest lift at the open...

The IMF has delayed its decision on including The Yuan in The SDR...

• *IMF ISSUES REPORT ON CRITERIA FOR YUAN RESERVE-CURRENCY STATUS
• *IMF STAFF PROPOSES DELAYING ANY CHANGE IN SDR TO SEPT. 2016
• *IMF SAYS `SIGNIFICANT WORK REMAINS' ON REVIEW OF YUAN IN SDR
• *IMF: OPERATIONAL ISSUES MUST BE RESOLVED IF YUAN PART OF SDR
• *IMF: YUAN MADE `SUBSTANTIAL PROGRESS' ON INTL USE SINCE 2010

As Bloomberg reports, though there is a delay the endgame remains in sight...

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