CHINA MARKETS: Yuan Weaker; Rates Mixed; Stocks Down

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

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

     The yuan was last at 6.6619 against the U.S. unit, compared with the

official closing price of 6.6605 on Tuesday.

     The PBOC set the yuan central parity rate at 6.6633, 0.05% weaker than

Tuesday's 6.6597.

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

was last at 2.8702%, compared with Tuesday's average of 2.8939%. The overnight

repo average was at 2.8152%, compared with Tuesday's 2.7923%.

     The People's Bank of China injected CNY100 billion in seven-day reverse

repos and CNY80 billion in 14-day reverse repos via open-market operations

Wednesday. This resulted in a net drain of CNY40 billion for the day, as a total

of CNY220 billion in reverse repos mature. This was the third consecutive day

this week that the PBOC has drained liquidity from the interbank market.

     The yield on benchmark 10-year China government bonds was last at 3.5814%,

compared with the previous close of 3.5942%.

     Stocks fell, with the coal and non-ferrous metals sectors leading losses.

The benchmark Shanghai Composite Index was last down 0.31% at 3,279.96. Hong

Kong Exchanges announced that morning trading had been delayed due to the

issuance of Typhoon Signal No.8.

--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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