MNI CHINA MARKETS: Yuan Strengthened; Rates Mixed; Stocks Down

     BEIJING (MNI) - The yuan rose against the U.S. dollar on Thursday morning

even though the People's Bank of China set a weaker fixing for the day.

     The yuan was last at 6.6140 against the U.S. unit, stronger than the

official closing price of 6.6150 on Wednesday, after opening at 6.6180.

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

U.S. dollar weaker at 6.6195 on Thursday, compared with Wednesday's 6.6163. The

PBOC has set the fixing weaker for nine consecutive trading days, with today's

fixing the weakest since Nov. 22.

     Money market rates mixed after the PBOC injected CNY270 billion into the

banking system via its open market operations, leaving liquidity unchanged. The

seven-day repo average was last at 2.7532%, lower than Wednesday's average of

2.7624%. The overnight repo average was at 2.5611%, higher than Wednesday's

2.5455%.

     The yield on benchmark 10-year China government bonds was last at 3.9000%,

up from the previous close of 3.8850%, according to Wind, a financial data

provider. 

     Stocks fell, dragged down by the coal and insurance sectors in the morning

session, with the benchmark Shanghai Composite Index 0.66% lower at 3,3272.37.

Hong Kong's Hang Seng Index was 0.07% higher at 28,245.29.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]