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MNI CHINA MARKETS: CNY Stronger; Rates Diverge; SH Shares Down

     BEIJING (MNI) - The Chinese yuan strengthened to 6.3128 against the U.S.
dollar on Monday from Friday's 6.3240 closing, following today's stronger
fixing. 
     PBOC set the yuan central parity rate vs the U.S. dollar at 6.3193 on
Monday, stronger than Friday's 6.3272. 
     Interbank market rates diverged after PBOC drained a net of CNY70 billion
by skipping its open market operations.
  - 7-day repo average rose to 2.7374% from 2.7036% Friday; 
  - Overnight repo average was down to 2.5225% from 2.5244% Friday. 
     Yield on 10-year China Government Bond last traded 3.7300%, up from 3.7000%
at close Friday: Wind Information.
The Shanghai Composite Index fell 1.20% to 3114.87 at the 11:00 a.m. today, and
Hong Kong's Hang Seng Index dropped 0.46% to 30171.03. 
--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com
--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]

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