CHINA MARKETS: Yuan Stronger; Rates Lower; Stocks Rise

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

after the People's Bank of China set a stronger daily fixing and some market

participants increased their selling of U.S. dollars concerning further

depreciation of dollar. 

     The yuan was last at 6.5804 against the U.S. unit, 0.26% stronger than the

official closing price of 6.5975 on Tuesday. It was the strongest intraday rate

since June 23 last year, when it hit 6.5685. 

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

U.S. dollar at 6.6102 on Wednesday, stronger than Tuesday's 6.6293. The PBOC has

set the fixing stronger for three straight trading days and today's fixing marks

the highest since Aug. 17 last year, when it was 6.6056. 

     Money market rates were down on Wednesday even though the PBOC drained a

net CNY100 billion via open-market operations for the day.

     The seven-day repo average was last at 2.7105%, lower than Tuesday's

average of 2.9322%. The overnight repo average was at 2.8849%, also lower than

Tuesday's 2.9622%.

     The yield on benchmark 10-year China government bonds was last at 3.6196%,

up from the previous close of 3.6086%, according to Wind, a financial data

provider. 

     Stocks were up, led higher by shares of securities companies. The benchmark

Shanghai Composite Index was 0.05% higher at 3,366.97. Hong Kong's Hang Seng

Index was 0.80% higher at 27,980.28.

--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$]