Daily Chinese yuan and money market update

SHANGHAI, July 29 (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 6.8264 10.7475 6.3528 6.5300 5.77/6.17 pct
Mid-point 6.8205 10.7344 6.3503***
Pvs close 6.8410 10.7484 6.3459 6.4950 5.54/6.26 pct

Sources: CNYX=CFXS, CNYNDFOR=, CNYVOL

* Yuan per 100 yen.

** Offshore NDF/VOLS figures as at 0954 GMT, compared with
levels at 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 29 3.4135 3.5182 4.1027
Change on day 0.2802 1.6000 0.0000
Change on mth 0.1280 -0.0565 0.0127

* 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 ACTIVITY

** China central bank drains 8 bln yuan via repos

SHANGHAI - China's central bank is draining 8 billion yuan
($1.2 billion) from the money market on Tuesday through 28-day
bond repurchase agreements, traders said.

Full story: [ID:nSHA72934]

- - - -

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

SHANGHAI - China's central bank auctioned 8 billion yuan
($1.2 billion) 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:nSHA15261]

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MARKET NEWS

** China yuan continues slide vs dlr in NDF market

SHANGHAI - Spot yuan rebounded against the dollar on Tuesday
but the Chinese currency kept sliding in the offshore forwards
market, as traders continued cutting back expectations for
long-term appreciation in response to an apparent change in
China's forex policy.

Full story: [ID:nSHA54546]

- - - -

** China stocks end down 1.8 pct as financials slide

SHANGHAI - Chinese stocks dropped sharply on Tuesday, led by
financial and property shares, in response to major falls in the
U.S. and Hong Kong markets as concern about the U.S. credit
crisis resurfaced.

Full story: [ID:nSHA86666]

- - - -

** China bill, bond curves flatten on IPO squeeze

SHANGHAI - China's bill and bond curves flattened on Tuesday
as the seven-day bond repurchase rate rose sharply because of an
IPO-related squeeze.

Full story: [ID:nSHA96815]

- - - -

POLICY NEWS

** China says to expand insurers' investment options

BEIJING - China plans to give insurance firms more investment
options, the industry watchdog said on Tuesday, as it disclosed
that insurers still hold nearly 80 percent of their assets in
bonds and bank deposits.

Full story: [ID:nPEK110006]

- - - -

** China says efforts to solve safeguards continue at WTO

GENEVA - Efforts are continuing at the World Trade
Organisation (WTO) to resolve a dispute over proposals to protect
developing countries from a surge in agricultural imports,
China's WTO ambassador said on Monday.

Full story: [ID:nL880872]

- - - -

** New China energy body to guide, not set, policy-NDRC

BEIJING - China's newly formed National Energy Administration
will not have the authority to set policy on key issues such as
oil stockpiles and domestic fuel prices, the government's top
economic planner said on Tuesday, providing the first details of
the new body's responsibilities.

Full story: [ID:nPEK117950]

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ECONOMIC NEWS

** China power crisis symptom of deep structural woes

BEIJING - China's power shortages may become more than a
seasonal summer bugbear, as price controls complicate the search
for investment to solve deep-rooted problems in the mining,
transport and generating sectors.

Full story: [ID:nPEK18183]

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CORPORATE NEWS

** China Agbank sees future in its rural roots

BEIJING - Agricultural Bank of China is planning to go back
to its rural roots. AgBank, the country's third-largest bank by
assets, closed many rural branches over the last decade, but it
regards its still-extensive presence in the countryside as a
blessing for its business, a senior official said on Tuesday.

Full story: [ID:nPEK106807]

- - - -

** China Railway wins contracts worth $1.2 billion

SHANGHAI - China Railway Group (0390.HK: Quote, Profile, Research)(601390.SS: Quote, Profile, Research), the
country's largest railway and highway builder, said on Tuesday
that two of its subsidiaries have won two contracts worth a total
of 8.1 billion yuan ($1.2 billion).

Full story: [ID:nSHA287648]

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To see a guide on contributions, please click <CN/CONT1>.
(Compiled by Shanghai Newsroom; Editing by Edmund Klamann)
(Shanghai newsroom, +86 21 6104-1688, fax +86 21 6104-1728,
shanghai.newsroom@reuters.com))