CHINA MARKETS: Yuan Stronger; Rates Lower; Stocks Down

     BEIJING (MNI) - The yuan was stronger against the U.S. dollar on Wednesday

even though the People's Bank of China set the fixing rate weaker for the day.

     The yuan was last at 6.5262 against the U.S. unit, compared with the

official closing price of 6.5350 on Tuesday.

     The PBOC set the yuan central parity rate at 6.5382, 0.16% weaker than

Tuesday's 6.5277.

     Money market rates were lower Wednesday morning. The seven-day repo average

was last at 2.7259%, compared with Tuesday's average of 2.8734%. The overnight

repo average was at 2.6120%, compared with Tuesday's 2.6220%.

     The PBOC injected CNY70 billion in liquidity via open-market operations on

Wednesday, leaving the liquidity level unchanged, as a total of CNY70 billion in

reverse repos matured today.

     The yield on benchmark 10-year China government bonds was last at 3.5982%,

compared with the previous close of 3.5825%.

     Stocks fell, with the electronic devices  and electrical equipment sectors

leading losses. The benchmark Shanghai Composite Index was last down 0.15% at

3,374.43. Hong Kong's Hang Seng Index was 0.49% lower at 27,836.48.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

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

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