CHINA MARKETS: Yuan Stronger; Rates Lower; Stocks Up

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

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

     The yuan was last at 6.6315 against the U.S. unit, compared with the

official closing price of 6.6398 on Monday.

     The PBOC set the yuan central parity rate at 6.6268, 0.10% weaker than

Monday's 6.6205.

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

was last at 2.7298%, compared with Monday's average of 2.7896%. The overnight

repo average was at 2.6141%, compared with Monday's 2.6198%.

     The PBOC injected a net CNY140 billion in liquidity via open-market

operations on Tuesday, the sixth consecutive trading day the PBOC has made a net

injection.  

     The yield on benchmark 10-year China government bonds was last at 3.7225%,

compared with the previous close of 3.7200%.

     Stocks rose, with the financial and cement-making sectors leading gains.

The benchmark Shanghai Composite Index was last up 0.08% at 3,383.56. Hong

Kong's Hang Seng Index was 0.03% higher at 28,314.03.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@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$]