CHINA MARKETS: Yuan Weaker; Rates Mixed; Stocks Down

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

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

     The yuan was last at 6.7250 against the U.S. unit, 0.08% weaker than the

official closing price of 6.7194 on Tuesday. 

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

U.S. dollar at 6.7205, compared with Tuesday's 6.7148. 

     Money market rates were mixed in the morning session on Wednesday after the

PBOC had a net zero injection/drain for the day via open-market operations for

the third consecutive day. 

     The seven-day repo average was last at 2.7614% Wednesday morning, lower

than Tuesday's 2.9411%. The overnight repo average was 2.8306%, higher than the

previous 2.8235%.

     The yield on benchmark 10-year China government bonds was last at 3.7968%,

up from the previous close of 3.7611%, according to Wind, a financial data

provider. 

     Stocks fell, led lower by the steel and non-ferrous metals sectors. The

benchmark Shanghai Composite Index was down 0.17% to 3,287.09. Hong Kong's Hang

Seng Index was 0.32% higher at 27,627.32.

--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$]