CHINA MARKETS: Yuan Falls; Rates Rise; Stocks Up

     BEIJING (MNI) - The yuan fell against the U.S. dollar Thursday morning

after the PBOC set a weaker fixing for the day.

     The yuan was last at 6.5477 against the U.S. unit, weaker than the official

closing price of 6.5039 on Wednesday. 

     The People's Bank of China set the yuan central parity rate against the

U.S. dollar at 6.5465 Thursday compared with Wednesday's 6.5382. The PBOC set

the fixing weaker for a third consecutive day after 11 straight days of stronger

fixings.

     Money market rates were up on Thursday morning as liquidity tightened with

the end of the quarter approaching and as banks are preparing for their

quarterly macro-prudential assessments by the PBOC. 

     The seven-day repo average was last at 2.8315%, higher than Wednesday's

average of 2.8271%. The overnight repo average was at 2.6500%, higher than

Wednesday's 2.6312%.

     The yield on benchmark 10-year China government bonds was last at 3.5973%,

down from the previous close of 3.6126%, according to Wind, a financial data

provider. 

     Stocks were up, led higher by shares of new-energy automobile companies.

The benchmark Shanghai Composite Index was 0.10% higher at 3,387.70. Hong Kong's

Hang Seng Index was 0.28% lower at 27,816.39.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

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