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

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

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

     The yuan was last at 6.4849 against the U.S. unit, stronger than the

official closing price of 6.4968 on Thursday. The currency rose as high as

6.4804 in the morning session, the strongest since Sept. 8. 

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

U.S. dollar at 6.4915, stronger than Thursday's 6.5043. The PBOC has set the

fixing stronger for three trading days out of four this week, and today's fixing

was the highest since May 3, 2016.

     Money market rates were mixed in the interbank market after the PBOC

skipped open-market operations for the 10th consecutive trading day. The

seven-day repo average was last at 2.6639%, lower than Thursday's average of

2.7010%. The overnight repo average was at 2.4486%, higher than Thursday's

2.4324%. 

     The yield on benchmark 10-year China government bonds was last at 3.9250%,

down from the previous close of 3.9325%, according to Wind, a financial data

provider. 

     Mainland stocks were up, led higher by shares of property and securities

companies in the morning session. The benchmark Shanghai Composite Index was up

0.14% at 3,390.51. Hong Kong's Hang Seng Index was 0.03% higher at 30,745.22

--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$]