CHINA MARKETS: Yuan Weaker; Rates Lower; Stocks Down

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

after three consecutive days of appreciation as the U.S. dollar index rebounded.

     The yuan was last at 6.5975 against the U.S. unit, 0.07% weaker than the

official closing price of 6.5927 on Wednesday. 

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

U.S. dollar at 6.6010 Thursday, stronger than Wednesday's 6.6102. The PBOC has

set the fixing stronger for four straight trading days, and today's fixing

marked the highest since June 24 of last year, when it was 6.5776. 

     Money market rates were lower on Thursday even though the PBOC drained a

net CNY40 billion via open-market operations for the day.

     The seven-day repo average was last at 2.8390%, lower than Wednesday's

average of 2.8823%. The overnight repo average was at 2.8237%, also lower than

Wednesday's 2.9182%.

     The yield on benchmark 10-year China government bonds was last at 3.5967%,

down from the previous close of 3.6010%, according to Wind, a financial data

provider. 

     Stocks were down, dragged lower by the coal and steel sectors. The

benchmark Shanghai Composite Index was 0.51% lower at 3,346.45. Hong Kong's Hang

Seng Index decreased 0.63% to 27,918.83.

--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$]