CHINA MARKETS: Yuan Strengthens; Rates Mixed; Stocks Up

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

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

     The yuan was last at 6.6261 against the U.S. unit, stronger than the

official closing price of 6.6339 on Monday. 

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

U.S. dollar at 6.6216 Tuesday, stronger than Monday's 6.6247.

     Money market rates were mixed after the PBOC drained a net CNY80 billion

via open-market operations for the day. The seven-day repo average was last at

2.6925%, lower than Monday's average of 2.7500%. The overnight repo average was

at 2.5278%, higher than Monday's 2.4600%.

     The yield on benchmark 10-year China government bonds was last at 3.8700%,

up from the previous close of 3.8650%, according to Wind, a financial data

provider. 

     Stocks were lower, dragged down by shares of securities brokerage companies

in the morning session. The benchmark Shanghai Composite Index was 0.54% lower

at 3,407.36. Hong Kong's Hang Seng Index was 0.87% higher at 28,874.83.

--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$]