CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Down

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

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

     The yuan was last at 6.6317 against the U.S. unit, weaker than the official

closing price of 6.6205 on Thursday. It dropped to as low as 6.6390 in daily

trade, the weakest level since Sept. 29, when it hit 6.6842. 

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

U.S. dollar at 6.6093 on Thursday, weaker than Wednesday's 6.5991. The PBOC has

set the fixing weaker for three straight trading days.

     Money market rates were down after the PBOC injected a net CNY100 billion

via open-market operations for the day. 

     The seven-day repo average was last at 2.7657%, lower than Wednesday's

average of 2.8711%. The overnight repo average was at 2.5548%, also lower than

Wednesday's 2.5764%.

     The yield on benchmark 10-year China government bonds was last at 3.6790%,

up from the previous close of 3.6965%, according to Wind, a financial data

provider. 

     Stocks were lower, dragged down by the steel and coal sectors. The

benchmark Shanghai Composite Index was 0.41% lower at 3,368.09. Hong Kong's Hang

Seng Index was 0.01% lower at 28,707.55.

--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$]