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CHINA MARKETS: Yuan Stronger; Rates Lower; Stocks Rise

     BEIJING (MNI) - The yuan rose against the U.S. dollar Monday morning after
the People's Bank of China set a much stronger daily fixing.
     The yuan was last at 6.6439 against the U.S. unit, 0.07% stronger than the
official closing price of 6.6645 on Friday. It was the strongest interday rate
since Aug. 24 last year, when it hit 6.6436. 
     The People's Bank of China set the yuan central parity rate against the
U.S. dollar at 6.6353 on Monday, much stronger than Friday's 6.6579. It was the
strongest fixing since Aug. 19 last year, when it was 6.6211, and the biggest
daily jump since the 0.45% increase on Aug. 10.
     Money market rates were down on Monday even though the PBOC drained a net
CNY100 billion via open-market operations for the day.
     The seven-day repo average was last at 2.6941%, much lower than Friday's
average of 2.9591%. The overnight repo average was at 2.7988%, also lower than
Friday's 2.8525%.
     The yield on benchmark 10-year China government bonds was last at 3.6155%,
up from the previous close of 3.6013%, according to Wind, a financial data
provider. 
     Stocks were up, led higher by shares of securities companies. The benchmark
Shanghai Composite Index was 0.96% higher at 3,363.44. Hong Kong's Hang Seng
Index was 0.69% higher at 28,041.33.
--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$]

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