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MNI CHINA MARKETS: Yuan Falls, Rates Diverge, SH Shares Gain

     BEIJING (MNI) - The yuan fell against the U.S. dollar on Monday after the
People's Bank of China (PBOC) set the fixing rate weaker for the day.
     The yuan was last at 6.3921 against the dollar, weaker than the official
closing 6.3891 on Friday.
     The PBOC set the parity weaker for three trading days at 6.3962, down from
Friday's 6.3867.
     Interbank market rates diverged after PBOC injected net CNY30 billion via
open market operations. The 7-day repo average fell to 2.7113% from Friday's
average of 2.8305% while overnight repo average rose to 2.5156% from Friday's
2.5045%.
     Yield on 10-year China Government Bond last traded 3.6200%, up from 3.6100%
close on Friday, according to Wind Information.
     The Shanghai Composite Index was up 0.18% to 3146.85 at 11:30 a.m. trading
break, while Hong Kong's Hang Seng Index rose 0.56% to 30,758.49.
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]

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