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MNI CHINA MARKETS: Yuan Stronger; Rates Diverged; Shares Down

     BEIJING (MNI) - The yuan gained against the U.S. dollar on Tuesday, after
the People's Bank of China set the fixing rate stronger for the day.
     The yuan was last at 6.3766 against the U.S. unit, compared with the
official closing price of 6.3888 on Monday.
     The People's Bank of China set the yuan central parity rate at 6.3799
Tuesday, stronger than Monday's 6.3852.
     Interbank market rates diverged after PBOC injected CNY100 billion via open
market operations, which resulted in no change in liquidity condition.
  - 7-day repo average fell to 2.6723% from Monday's average of 2.6911%;
  - Overnight repo average rose to 2.5118% from Monday's 2.5075%.
     Yield on 10-year China Government Bond last traded 3.6700%, down from
3.6850% close on Thursday: Wind Information.
     The Shanghai Composite Index was down 0.41% to 3200.55 at 11:23 am, while
Hong Kong's Hang Seng Index rose 0.6% to 31,234.35.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@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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