CHINA MARKETS: Yuan Rises; Rates Down; Stocks Lower

     BEIJING (MNI) - The yuan rose against the U.S. dollar on Friday morning

after the People's Bank of China set a weaker fixing for the day.

     The yuan was last at 6.6185 against the U.S. unit, stronger than the

official closing price of 6.6277 on Thursday. 

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

U.S. dollar at 6.6092 Friday, slightly stronger than Thursday's 6.6093. The PBOC

set the fixing stronger for the first time after three straight trading days of

weaker fixings.

     Money market rates were down after the PBOC injected a net CNY60 billion

via open-market operations for the day. 

     The seven-day repo average was last at 2.7592%, lower than Thursday's

average of 2.8530%. The overnight repo average was at 2.5420%, also lower than

Thursday's 2.5603%.

     The yield on benchmark 10-year China government bonds was last at 3.7075%,

down from the previous close of 3.7125%, according to Wind, a financial data

provider. 

     Stocks were lower, dragged down by shares of companies in the environmental

protection sector. The benchmark Shanghai Composite Index was 0.06% lower at

3,368.14. Hong Kong's Hang Seng Index was 0.74% higher at 28,374.26.

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

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

[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]