CHINA MARKETS: Yuan Weakens; Rates Lower; Stocks Down

     BEIJING (MNI) - The yuan fell against the U.S. dollar on Monday morning

after the People's Bank of China set a weaker fixing for the day.

     The yuan was last at 6.6372 against the U.S. unit, weaker than the official

closing price of 6.6295 on Friday. 

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

U.S. dollar at 6.6247 on Monday, weaker than Friday's 6.6072. The PBOC set the

fixing weaker for the first time after four straight trading days of stronger

fixings.

     Money market rates were lower after the PBOC drained a net CNY160 billion

after skipping open-market operations for the day. 

     The seven-day repo average was last at 2.7082%, lower than Friday's average

of 2.9000%. The overnight repo average was at 2.4614%, also lower than Friday's

2.5200%.

     The yield on benchmark 10-year China government bonds was last at 3.8700%,

down from the previous close of 3.8800%, according to Wind, a financial data

provider. 

     Stocks were lower, dragged down by shares of property companies. The

benchmark Shanghai Composite Index was 0.25% lower at 3,363.31. Hong Kong's Hang

Seng Index was 1.37% lower at 28,211.21.

--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$]