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

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

the People's Bank of China setting the fixing rate stronger for the day.

     The yuan was last at 6.3744 against the U.S. unit, compared with the

official closing price of 6.3709 on Tuesday.

     The People's Bank of China set the yuan central parity rate at 6.3773

Wednesday, stronger than Tuesday's 6.3799, the second consecutive trading day

the PBOC has set the parity stronger.

     Interbank market rates fell after PBOC net drained CNY30 billion via open

market operations.

  - 7-day repo average fell to 2.6740% from Tuesday's average of 2.6989%;

  - Overnight repo average dropped to 2.5141% from Tuesday's 2.5149%.

     Yield on 10-year China Government Bond was unchanged from the 3.6550% close

on Tuesday: Wind Information.

     The Shanghai Composite Index was down 0.78% to 3189.25 at 11:03 am, while

Hong Kong's Hang Seng Index declined 1.01% to 30,919.41.

--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$]