MNI CHINA MARKETS: Yuan Weaker; Rates Lower; SH Shares Down

     BEIJING (MNI) - The Chinese yuan slid to 6.2747 against the U.S. dollar on

Wednesday from yesterday's 6.2728 closing despite today's stronger fixing.  

     The People's Bank of China set the yuan central parity rate vs the U.S.

dollar at 6.2785 on Wednesday, stronger than Tuesday's 6.2816. Today is the

third day in a row that the central bank has set the fixing stronger.

     Interbank market rates dropped after PBOC chose not to conduct open-market

operation, which resulted in a net drain of CNY10 billion.

  - 7-day repo average dropped to 2.7754% from 2.8578% yesterday 

  - Overnight repo average was last at 2.5708%, down from 2.5867% yesterday. 

     The yield on 10-year China Government Bond was last unchanged from the

3.7200% close yesterday: Wind Information.

The Shanghai Composite Index dropped 0.72% to 3143.79 at the 10:59 am, while

Hang Seng Index was down 1.10% at 30,453.01.

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

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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