MNI CHINA MARKETS: Yuan Weakens; Rates Down; Stocks Up

     BEIJING (MNI) - The yuan fell against the U.S. dollar on Thursday morning

after after the People's Bank of China set a weaker fixing for the day.

     The yuan was last at 6.5065 against the U.S. unit, weaker than the official

closing price of 6.5017 on Wednesday. 

     The People's Bank of China set the yuan central parity rate against the

U.S. dollar at 6.5043 Thursday, weaker than Wednesday's 6.4920 and the first

weaker fixing in five trading days.

     Money market rates were down in the interbank market after the PBOC on

Friday announced a temporary targeted reserve requirement ratio cut in a bid to

hedge the liquidity gap during the coming Chinese New Year. The seven-day repo

average was last at 2.6779%, lower than Wednesday's average of 2.7302%. The

overnight repo average was at 2.4670%, also lower than Wednesday's 2.4964%. 

     The yield on benchmark 10-year China government bonds was last at 3.9350%,

up from the previous close of 3.9052%, according to Wind, a financial data

provider. 

     Mainland stocks were up, led higher by shares of oil companies in the

morning session. The benchmark Shanghai Composite Index was up 0.34% at

3,380.40. Hong Kong's Hang Seng Index was 0.15% higher at 30,605.87

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]