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

     BEIJING (MNI) - The yuan strengthened against the U.S. dollar on Monday

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

     The yuan was last at 6.4315 against the U.S. unit, up from 6.4680 on

Friday. The currency rose as high as 6.4280 in the morning session, the

strongest since Dec. 9, 2015. 

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.4574

on Monday, stronger than Friday's 6.4932.It was the strongest since May. 3. It

was also the biggest daily gain since Oct. 11. 

     Money market rates were lower after the PBOC injected a net of CNY265.5

billion via it open-market operations and Medium-term Lending Facility. The

seven-day repo average was last at 2.7762%, lower than Friday's average of

2.9043%. The overnight repo average was at 2.7610%, higher than Friday's

2.8355%. 

     The yield on benchmark 10-year China government bonds was last at 3.9650%,

up from the previous close of 3.9350%, according to Wind, a financial data

provider. 

     Mainland stocks rose, led by shares of property and securities companies.

The benchmark Shanghai Composite Index was up 0.14% at 3,433.59 at the mid-day

trading break. Hong Kong's Hang Seng Index gained 0.71%  to 31,637.02.

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

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

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