MNI CHINA MARKETS: Yuan Stronger; Rates Lower; SH Shares Down

     BEIJING (MNI) - The Chinese yuan strengthened to 6.3267 against the U.S.

dollar on Tuesday from Monday's 6.3322 closing, following today's stronger

fixing. 

     PBOC set the yuan central parity rate vs the U.S. dollar at 6.3246 on

Tuesday, stronger than Monday's 6.3320. 

     Interbank market rates fell after PBOC skipped its open-market operation on

Tuesday morning to drain CNY40 billion. 

  - 7-day repo average dropped to 2.7608% from 2.8186% Monday; 

  - Overnight repo average was down to 2.5333% from 2.5405% Monday. 

     Yield on 10-year China Government Bond last traded 3.8000%, down from

3.8100% at close Monday: Wind Information.

The Shanghai Composite Index fell 0.25% to 3271.49 at 11:00 a.m. today, while

Hong Kong's Hang Seng Index decreased 0.70% to 31293.04 at the same time. 

--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$]