CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Rise

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

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

     The yuan was last at 6.7284 against the U.S. unit, 0.10% weaker than the

official closing price of 6.7219 on Wednesday. 

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

U.S. dollar at 6.7211 Thursday, slightly weaker than Wednesday's 6.7205.

     Money market rates were down in the morning session on Thursday even

thought the PBOC drained a net CNY20 billion for the day via open-market

operations. 

     The seven-day repo average was last at 2.8254% Thursday morning, lower than

Wednesday's 2.8657%. The overnight repo average was 2.7711%, also lower than the

previous 2.8594%.

     The yield on benchmark 10-year China government bonds was last at 3.7401%,

down from the previous close of 3.7567%, according to Wind, a financial data

provider. 

     Stocks rose, led higher by the coal and non-ferrous metals sectors. The

benchmark Shanghai Composite Index was up 0.13% to 3,289.44. Hong Kong's Hang

Seng Index was 0.40% lower at 27,494.78.

--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$]