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MNI CHINA MARKETS: Yuan Weakened; Rates Mixed; SHCOMP Higher

     BEIJING (MNI) - The Chinese yuan weakened to 6.3490 against the US dollar
on Thursday, from the 6.3441 closing on Feb 14, the last trading day before the
Chinese New Year holiday. 
     PBOC set the yuan central parity rate vs the US dollar at 6.3530 on
Thursday, weaker than the 6.3428 parity on Feb. 14.  
     Interbank market rates diverged Thursday, after PBOC injected net CNY350
billion in open-market operations, the first time the central bank conducted OMO
after 16 consecutive days of inaction before the Spring Festival. 
 - 7-day repo average last at 2.8644, higher than 2.8279% yesterday 
 - Overnight repo average 2.6041%, down from 2.7173% yesterday.  
     The yield on 10-year China government bonds last traded 3.8795%.
The Shanghai Composite Index was last 1.83% higher at 3,257.79 in the morning
session, while Hong Kong's Hang Seng Index dipped 1.03% to 31,108.98.
--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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