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MNI CHINA MARKETS: Yuan Stronger; Rates Diverge; SH Shares Up

     BEIJING (MNI) - The Chinese yuan strengthened to 6.3673 against the U.S.
dollar on Thursday from Wednesday's 6.3784 closing, despite today's weaker
fixing. 
     The People's Bank of China set the yuan central parity rate at 6.3768
Thursday, weaker than Wednesday's 6.3733.
     Interbank market rates diverged after PBOC drained a net of CNY20 billion
via its open market operations.
  - 7-day repo average fell to 2.6636% from 2.6894% Wednesday; 
  - Overnight repo average rose to 2.4830% from 2.4771% Wednesday. 
     Yield on 10-year China Government Bond last traded 3.6950%, down from
3.7050% close on Wednesday: Wind Information.
The Shanghai Composite Index was up 0.08% to 3161.57 at 11:05 am, while Hong
Kong's Hang Seng Index was last up 0.78% at 30,775.71. 
--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com
--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]

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