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

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

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

     The yuan was last at 6.5949 against the U.S. unit, stronger than the

official closing price of 6.6159 on Wednesday. It was the first time the yuan

had broken the 6.6 level in intraday trading since Nov. 2. 

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

U.S. dollar at 6.6021 Thursday, much stronger than Wednesday's 6.6290. Today's

fixing was the strongest since Oct. 18, and marked the biggest rise since Oct.

11.

     Money market rates fell as the PBOC injected net CNY100 billion via

open-market operations for the day. The seven-day repo average was last at

2.8188%, lower than Wednesday's average of 2.8967%. The overnight repo average

was at 2.7376%, also lower than Wednesday's 2.8312%.

     The yield on benchmark 10-year China government bonds was last at 4.00%,

down from the previous close of 4.02%, according to Wind, a financial data

provider. 

     Stocks fell, dragged down by shares of alcoholic beverage makers in the

morning session. The benchmark Shanghai Composite Index was 0.30% lower at

3,420.03. Hong Kong's Hang Seng Index was 0.43% higher at 30,128.13.

--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$]