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MNI CHINA MARKETS: Yuan Weakens, Rates Diverge, Shares Rose

     BEIJING (MNI) - The Chinese yuan fell to 6.3435 against the U.S. dollar on
Friday from yesterday's 6.3321 closing, following weaker fixing today.  
     The People's Bank of China set the yuan central parity rate vs the U.S.
dollar at 6.3451 vs Thursday's 6.3239. The central bank has set the parity
weaker for two trading days out of five this week.
     Interbank market rates diverged after PBOC's inaction in open market
operations netted in a drain of CNY40 billion.
 - 7-day repo average fell to 2.7262% from 2.7536% yesterday 
 - Overnight repo average rose to 2.5582% from 2.5433% yesterday. 
     Yield on 10-year China Government Bond last traded 3.8400%, up from 3.8295%
close yesterday: Wind Information.
The Shanghai Composite Index climbed 0.24% at 3296.29 at 1:45 p.m., while Hang
Seng Index was last at 30942.76, up 0.94%.
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]

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