CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Fall

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

the PBOC set a weaker fixing for the day.

     The yuan was last at 6.6038 against the U.S. unit, weaker than the official

closing price of 6.5922 on Friday. 

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

U.S. dollar at 6.5945 Monday, weaker than Friday's 6.5861. Today's fixing was

the weakest since Sept. 1.

     Money market rates were lower even though the PBOC drained a net CNY80

billion for the day -- the first net drain since Sept. 11. 

     The seven-day repo average was last at 2.9306%, lower than Friday's average

of 2.9533%. The overnight repo average was at 2.7345%, also lower than Friday's

2.7483%.

     The yield on benchmark 10-year China government bonds was last at 3.5610%,

down from the previous close of 3.5821%, according to Wind, a financial data

provider. 

     Stocks were down, led lower by the real estate and non-ferrous metals

sectors. The benchmark Shanghai Composite Index was 0.41% lower at 3,3380.83.

Hong Kong's Hang Seng Index was 1.17% lower at 27,560.16.

--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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