CHINA MARKETS: Yuan Stronger; Rates Lower; Stocks Rise

     BEIJING (MNI) - The yuan strengthened against the U.S. dollar on Monday

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

     The yuan was last at 6.6687 against the U.S. unit after opening at 6.6670,

compared with the official closing price of 6.6785 on Friday.

     The PBOC set the yuan central parity rate at 6.6709, 0.05% stronger than

Friday's 6.6744.

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

was last at 2.7620%, compared with Friday's average of 2.8025%. The overnight

repo average was at 2.8337%, compared with Friday's 2.8627%.

     The People's Bank of China injected CNY100 billion in seven-day reverse

repos and CNY80 billion in 14-day reverse repos via open-market operations on

Monday. This resulted in a net drain of CNY50 billion for the day, as a total of

CNY230 billion in reverse repos mature on Monday.

     The yield on benchmark 10-year China government bonds was last at 3.6037%,

compared with a previous close of 3.5774%.

     Stocks rose, with the non-ferrous metals and glass-making sectors leading

gains. The benchmark Shanghai Composite Index was last up 0.10% at 3,271.94.

Hong Kong's Hang Seng Index was 0.26% higher at 27,117.56.

--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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