MNI China Daily Summary: Friday, October 25

     BEIJING (MNI) - LIQUIDITY: The People's Bank of China (PBOC) left liquidity

unchanged after injecting CNY30 billion 7-day reverse repos by open market

operations, offsetting CNY30 billion RR maturing today, according to Wind

Information.

     RATES: The seven-day weighted average interbank repo rate for depository

institutions (DR007), traded between 2.4000% and 3.0000%, increased to 2.6613%

from Wednesday's close of 2.6292%, Wind Information showed. The overnight repo

average, being traded between 2.1000% and 2.6500%, rose to 2.5012% from

Wednesday's 2.4466%.

     YUAN: The currency weakened to 7.0705 against the dollar from Thursday's

close of 7.0702. The PBOC set the dollar-yuan central parity rate weaker to

7.0749 from 7.0727 on Thursday.

     BONDS: The yield on 10-year China Government Bonds was last at 3.2325%, up

from the close of 3.2150% on Thursday, according to Wind Information.

     STOCKS: The Shanghai Composite Index rose 0.48% to 2,954.93. Hong Kong's

Hang Seng Index edged down 0.49% to 26,667.39.

     FROM THE PRESS: China has mostly completed the issuances of new local

government bonds (LGBs) for this year, adding CNY3.04 trillion for the first

ninth month, the Securities Daily reported citing data by the Ministry of

Finance. Over 40% of the funds are used to support ongoing projects, mostly

transportation and basic infrastructure, the newspaper said citing the ministry.

     China's housing prices are expected to decline through the end of this

year, the China Securities Journal reported citing a report by the National

Academy of Economic Strategy under CASS. The average prices in 24 major Chinese

cities started to decrease in September following slower growth and the

transaction volume of second-hand housings also continued to decline, the

newspaper cited the report as saying.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com