MNI CHINA MARKETS: Yuan Weaker; Rates Fall; Stocks Down

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

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

     The yuan was last at 6.6023 against the U.S. unit, compared with the

official closing price of 6.5949 on Tuesday. 

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.6011

on Wednesday, weaker than Tuesday's 6.5944.

     Money market rates fell Wednesday morning after the PBOC injected CNY240

billion in liquidity via open-market operations, balancing out the same amount

of reverse repos that matured the same day. The seven-day repo average was last

at 2.7832% on Wednesday, lower than Tuesday's average of 2.9202%. The overnight

repo average was at 2.6273%, lower than Tuesday's 2.7728%.

     The yield on benchmark 10-year China government bonds was last at 3.9589%,

up from the previous close of 3.9565%, according to Wind, a financial data

provider. 

     Stocks were down, led lower by the alcoholic beverage and entertainment

sectors. The benchmark Shanghai Composite Index was last down 0.72% at 3,309.60.

Hong Kong's Hang Seng Index was 0.34% lower at 29,581.13.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@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$]