CHINA MARKETS: Yuan Weaker; Rates Higher; Stocks Up

     BEIJING (MNI) - The yuan was weaker against the U.S. dollar on Wednesday

after the People's Bank of China set the fixing rate lower for the day.

     The yuan was last at 6.6404 against the U.S. unit, compared with the

official closing price of 6.6332 on Tuesday.

     The PBOC set the yuan central parity rate at 6.6322, 0.08% weaker than

Tuesday's 6.6268.

     Money market rates were higher Wednesday morning. The seven-day repo

average was last at 2.9215%, compared with Tuesday's average of 2.7845%. The

overnight repo average was at 2.6498%, compared with Tuesday's 2.6328%.

     The PBOC injected CNY160 billion in liquidity via open-market operations

Wednesday, resulting in no net injection or drain for the day as the same amount

of reverse repos matured and ending six straight days of net liquidity

injections. 

     The yield on benchmark 10-year China government bonds was last at 3.7525%,

compared with a previous close of 3.7200%.

     Stocks rose, with the household appliance and environmental protection

sectors leading gains. The benchmark Shanghai Composite Index was last up 0.22%

at 3,395.60. Hong Kong's Hang Seng Index was 0.63% higher at 28,333.25.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

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

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