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

     BEIJING (MNI) - The Chinese yuan dropped to 6.2965 against the U.S. dollar
on Monday from Friday's 6.2898 closing, following today's weaker fixing.  
     The People's Bank of China set the yuan central parity rate at 6.3034 on
Monday, weaker than last Friday's 6.2897, marking the fourth consecutive trading
day that the central bank has set a weaker fixing.
     Interbank market rates decreased after PBOC's injection of CNY80 billion in
7-day reverse repos resulted in no change in liquidity conditions.  
  - 7-day repo average last at 2.8211%, lower than 3.0441% Friday 
  - Overnight repo average 2.6559%, down from 2.8367% Friday. 
     Yield on 10-year China Government Bond unchanged from the 3.5250% close on
Friday: Wind Information.
The Shanghai Composite Index rose 0.08% to 3073.88 at 10:54, while Hong Kong's
Hang Seng Index was last down 0.41% to 30294.18.
--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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