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

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

even though the People's Bank of China set a stronger fixing for the day.

     The yuan was last at 6.6430 against the U.S. unit, weaker than the official

closing price of 6.6391 on Thursday. 

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

U.S. dollar at 6.6282 Friday, stronger than Thursday's 6.6325. The PBOC this

week set the fixing stronger in two out of five trading days.

     Money market rates were lower as the PBOC injected a net CNY50 billion via

open-market operations for the day. The seven-day repo average was last at

2.8190%, lower than Thursday's average of 2.9026%. The overnight repo average

was at 2.6906%, also lower than Thursday's 2.6630%.

     The yield on benchmark 10-year China government bonds was last at 3.9050%,

up from the previous close of 3.9000%, according to Wind, a financial data

provider. 

     Stocks fell, dragged down by the steel and coal sectors in the morning

session. The benchmark Shanghai Composite Index was 0.26% lower at 3,418.71.

Hong Kong's Hang Seng Index was 0.02% lower at 29,131.57.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@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$]