CHINA MARKETS: Yuan Stronger; Rates Lower; Stocks Up

     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 6.6113 against the U.S. unit, compared with the

official closing price of 6.6160 on Tuesday.

     The PBOC set the yuan central parity rate at 6.5991, 0.16% weaker than

Tuesday's 6.5883.

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

was last at 2.8152%, compared with Tuesday's average of 2.8718%. The overnight

repo average was at 2.5718%, compared with Tuesday's 2.5935%.

     The PBOC injected a net CNY270 billion in liquidity via open-market

operations on Wednesday, but considering maturing Medium-term Lending Facility

instruments, the overall net injection on the day was CNY42.5 billion.

     The yield on benchmark 10-year China government bonds was last at 3.7038%,

compared with the previous close of 3.6430%.

     Stocks rose, with the environmental protection and and medical instrument

sectors leading gains. The benchmark Shanghai Composite Index was last up 0.19%

at 3,378.49. Hong Kong's Hang Seng Index was 0.10% lower at 28,667.56.

--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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