CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Flat

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

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

     The yuan was last at 6.7484 against the U.S. unit, dropping 0.16% compared

with the official closing price of 6.7376 on Thursday. 

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

U.S. dollar at 6.7373 Friday, modestly weaker than Thursday's 6.7307.

     Money market rates were down in the morning session on Friday after the

PBOC injected a net of CNY40 billion via its open-market operations.

     The seven-day repo average was last at 2.7419%, down from Thursday's

average of 2.9341%. The overnight repo average was at 2.8124% compared with

Thursday's 2.8313%.

     The yield on benchmark 10-year China government bonds was last at 3.7859%,

up from the previous close of 3.7588%, according to Wind, a financial data

provider. 

     Stocks were flat, with the non-ferrous metal sector and securities

brokerage sector fluctuating actively. The benchmark Shanghai Composite Index

was relatively unchanged at 3,248.43. Hong Kong's Hang Seng Index was 0.46%

lower at 27,006.29

--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$]