MNI CHINA MARKETS: Yuan Strengthens; Rates Down; Stocks Up

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

after the People's Bank of China set a stronger fixing for the day.

     The yuan was last at 6.6312 against the U.S. unit, stronger than the

official closing price of 6.6337 on Tuesday. 

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

U.S. dollar at 6.6290 Wednesday, stronger than Tuesday's 6.6356.

     Money market rates fell as the PBOC injected CNY190 billion via open-market

operations for the day. The seven-day repo average was last at 2.7554%, lower

than Tuesday's average of 2.9223%. The overnight repo average was at 2.7322%,

lower than Tuesday's 2.8512%.

     The yield on benchmark 10-year China government bonds was last at 4.000%,

up from the previous close of 3.9550%, according to Wind, a financial data

provider. 

     Stocks rose, led up by the financial sector in the morning session. The

benchmark Shanghai Composite Index was 0.71% higher at 3,434.71. Hong Kong's

Hang Seng Index was 0.96% higher at 30,104.94.

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

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

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