CHINA MARKETS: Yuan Weaker; Rates Lower; Stocks Rise

     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 6.6670 against the U.S. unit, 0.11% weaker than the

official closing price of 6.6600 on Thursday. 

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

U.S. dollar at 6.6579 Friday, slightly weaker than Thursday's 6.6525.

     Money market rates were down on Friday even though the PBOC drained a net

CNY130 billion via open-market operations

     The seven-day repo average was last at 2.8206%, lower than Thursday's

average of 2.9245%. The overnight repo average was at 2.8481%, also lower than

Thursday's 2.8590%.

     The yield on benchmark 10-year China government bonds was last at 3.5979%,

up from the previous close of 3.5969%, according to Wind, a financial data

provider. 

     Stocks was up, led higher by the coal sector. The benchmark Shanghai

Composite Index was up 0.97% at 3,303.36. Hong Kong's Hang Seng Index was 0.67%

higher at 27,697.85.

--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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