Daily Chinese yuan and money market update

SHANGHAI, July 1 (Reuters) - Following is a summary of market
activity and news articles on Tuesday relating to the yuan and
China's money market.

DLR/CNY EUR/CNY YEN/CNY* 1-YR NDF** 1-YR VOLS**
Close 6.8561 10.8017 6.4896 6.4610 6.75/7.25 pct
Mid-point 6.8608 10.8071 6.4590***
Pvs close 6.8543 10.8467 6.5112 6.4410 6.80/7.05 pct

Sources: CNYX=CFXS, CNYNDFOR=, CNYVOL

* Yuan per 100 yen.

** Offshore NDF/VOLS figures as at 1000 GMT, compared with
levels around the same time in the previous session.

*** The mid-point is a benchmark set by the central bank. The
yuan may rise or fall 0.5 percent from its mid-point versus the
dollar each day and 3.0 percent for non-dollar currencies.

MONEY AND BOND MARKET

7-day repo 90-day PBOC bill 1-yr treasury bond

CN7DRP=CFXS CN3MNFIX=R CN1YTFIX=R
July 1 3.0015 3.5777 3.5614
Change on day -0.2840 0.0030 0.0154
Change on mth -0.1346 0.0557 0.2481

** Change in weighted average and percentage point(s).

Please double-click on CNFIXINDEX for a full list of
Chinese fixed-income reference rates.

OPEN MARKET ACTICITY

** China central bank drains 3 bln yuan via repos

SHANGHAI - China's central bank is draining 3 billion yuan
($438 million) from the money market on Tuesday through 28-day
bond repurchase agreements, traders said.

Full story: [ID:nSHA298309]

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** China c.bank 1-year bill yield flat at auction

SHANGHAI - China's central bank auctioned 1.5 billion yuan
($219 million) of one-year bills in its regular open market
operation on Tuesday at a yield of 4.0583 percent, traders said,
in line with market expectations.

Full story: [ID:nSHA311325]

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MARKET NEWS

** Yuan ends lower vs dlr, seen rising 3-4 pct in H2

SHANGHAI - China's yuan ended slightly lower against the
dollar in the spot and offshore non-deliverable forwards markets
on Tuesday after the Chinese central bank set a lower reference
rate, ending a three-day run of rapid appreciation in the spot
rate.

Full story: [ID:nSHA317286]

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** China stocks slide 3.1 pct to 16-month low

SHANGHAI - China's main stock index sank more than 3 percent
to a fresh 16-month closing low on Tuesday, led by financial and
property shares, on worries about rising interest rates and heavy
supplies of shares from IPOs.

Full story: [ID:nSHA311976]

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** China bond yields continue rise but IRS come down

SHANGHAI - Chinese bond yields continued their uptrend on
Tuesday, but onshore and offshore interest rate swaps generally
came down, which some traders saw as a sign that bonds might soon
stabilise.

Full story: [ID:nSHA303703]

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** China Dev Bank 5-yr floater seen at 68 bps over

SHANGHAI - China Development Bank is likely to auction 20
billion yuan ($2.9 billion) of five-year floating rate bonds on
Wednesday at a coupon of about 68 basis points over the central
bank's one-year deposit rate, traders and analysts said on
Tuesday.

Full story: [ID:nSHA317408]

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POLICY NEWS

** China to slow yuan's rise, wind down tightening

BEIJING - China will steer its monetary tightening cycle to
an end this year, braking the yuan's pace of appreciation and
nudging up interest rates just once, a Reuters poll showed on
Tuesday.

Full story: [ID:nPEK297916]

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ECONOMIC NEWS

** China fresh food prices up slightly in latest week

BEIJING - China's fresh food prices rebounded in the week
ended June 29 due to more expensive vegetables and seafood, the
Ministry of Commerce said on Tuesday.

Full story: [ID:nPEK279952]

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** China slowing but still set to manage 10 pct growth

BEIJING - China will deliver its sixth straight year of
double-digit growth in 2008 despite a slower global economy and
rising prices at home, a quarterly Reuters poll shows.

Full story: [ID:nPEK304841]

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** Rising costs wound China's manufacturers

BEIJING - Inflation is taking a toll on China's businesses,
as two manufacturing surveys show that input prices are rising
and weighing on commercial activity.

Full story: [ID:nPEK289577]

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** CLSA's China June PMI eases to 53.3 vs 54.7 in May

BEIJING - China's economy slowed in June and output prices
rose at their fastest in four years as manufacturers passed some
of the rising cost of raw materials on to consumers, a CLSA
manufacturing survey showed on Tuesday.

Full story: [ID:nSEU000034]

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** China PMI hits near-3-year low as costs soar

BEIJING - China's manufacturing sector has lost considerable
momentum because of surging costs at home and weak demand from
abroad, an official survey showed on Tuesday.

Full story: [ID:nPEK298567]

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** China '08 GDP growth to fall to 10.3 pct

SHANGHAI - China's economic growth will slow to 10.3 percent
this year from last year's 11.9 percent, a government economist
said in comments published in the official China Securities
Journal on Tuesday.

Full story: [ID:nSHA288083]

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CORPORATE NEWS

** Chinese coffee grower eyes listing for expansion

SHANGHAI - A Chinese coffee bean supplier to Nestle (NESN.VX: Quote, Profile, Research)
said on Tuesday it aims to become the country's first listed
coffee producer by 2011.

Full story: [ID:nPEK300593]

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** PetroChina Lanzhou to up July runs 14 pct vs June

BEIJING - PetroChina (0857.HK: Quote, Profile, Research) (601857.SS: Quote, Profile, Research) (PTR.N: Quote, Profile, Research) plans to
raise crude processing in its Lanzhou refinery in July by 14
percent from June levels after delayed maintenance, an industry
source said on Tuesday.

Full story: [ID:nPEK317629]

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To see a guide on contributions, please click <CN/CONT1>.
(Compiled by Shanghai Newsroom; Editing by Edmund Klamann)