CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Fall

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

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

     The yuan was last at 6.6880 against the U.S. unit, 0.17% weaker than the

official closing price of 6.6771 on Tuesday. 

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

U.S. dollar at 6.6779 on Wednesday, weaker than Tuesday's 6.6689. It was the

weakest daily fixing since last Wednesday' 6.7075.

     Money market rates were down on Wednesday after the PBOC injected a net

CNY180 billion via open-market operations, the first day since last Thursday

that the PBOC has made a net injection.

     The seven-day repo average was last at 2.8360%, lower than Tuesday's

average of 2.8455%. The overnight repo average was at 2.7911%, also lower than

Tuesday's 2.8329%.

     The yield on benchmark 10-year China government bonds was last at 3.5825%,

down from the previous close of 3.5754%, according to Wind, a financial data

provider. 

     Stocks fell, led lower by the steel and cement sectors. The benchmark

Shanghai Composite Index was down 0.51% at 3,234.62. Hong Kong's Hang Seng Index

was 0.35% higher at 27,268.79.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

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