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MNI CHINA MARKETS: Yuan Weaker; Rates Diverge; SH Shares Up

     BEIJING (MNI) - The yuan fell against the U.S. dollar on Monday, despite
the People's Bank of China setting the fixing rate stronger for the day.
     The yuan was last at 6.3400 against the U.S. unit, compared with the
official closing price of 6.3351 on Friday.
     The People's Bank of China set the yuan central parity rate at 6.3345
Monday, stronger than last Friday's 6.3524.
     Interbank market rates diverged after PBOC injected CNY156 billion by
1-year Medium-term Lending Facilities (MLF) loans.
  - 7-day repo average fell to 2.6866% from Friday's average of 2.6907%;
  - Overnight repo average rose to 2.5577% from Friday's 2.4506%.
     Yield on 10-year China Government Bond last traded 3.6925%, up from 3.6850%
close on Friday: Wind Information.
     The Shanghai Composite Index was up 0.57% to 3181.28 at 11:01 am, while
Hong Kong's Hang Seng Index rose 1.36% to 31,545.65.
--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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