CHINA MARKETS: Yuan Stronger; Rates Mixed; Stocks Down

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

after the People's Bank of China set a stronger daily fixing. 

     The yuan was last at 6.6979 against the U.S. unit, 0.08% stronger than the

official closing price of 6.7035 on Tuesday. 

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

U.S. dollar at 6.7075 Wednesday, the strongest since Oct. 10, when it stood at

6.7008. The fixing was also 0.16% higher than Tuesday's 6.7184.

     Money market rates were mixed in the morning session after the PBOC made a

net zero injection via open-market operations for the second consecutive day. 

     The seven-day repo average was last at 2.8877%, higher than Tuesday's

average of 2.8590%. The overnight repo average was at 2.7930%, lower than

Tuesday's 2.8013%.

     The yield on benchmark 10-year China government bonds was last at 3.6360%,

down from the previous close of 3.6478%, according to Wind, a financial data

provider. 

     Stocks fell, led lower by the steel sector and shares of securities

companies. The benchmark Shanghai Composite Index was down 0.22% to 3,275.10.

Hong Kong's Hang Seng Index was 0.67% lower at 27,663.69.

--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$]