CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Up

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

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

     The yuan was last at 6.6374 against the U.S. unit, weaker than the official

closing price of 6.6305 on Tuesday. 

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.6192

Wednesday, weaker than Tuesday's 6.6076. The PBOC has set the fixing weaker for

three consecutive trading days, and today's fixing was the lowest since Aug. 29.

     Money market rates were down as fiscal spending eased liquidity tightness. 

     The seven-day repo average was last at 2.9038%, lower than Tuesday's

average of 3.1477%. The overnight repo average was at 2.8550%, also lower than

Tuesday's 2.8845%.

     The yield on benchmark 10-year China government bonds was last at 3.5816%,

up from the previous close of 3.5747%, according to Wind, a financial data

provider. 

     Stocks were up, led higher by the steel and real estate sectors. The

benchmark Shanghai Composite Index was 0.02% higher at 3,344.26. Hong Kong's

Hang Seng Index was 0.51% higher at 27,652.61.

--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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