BEIJING: China’s yuan inched up against the dollar on Monday, underpinned by a narrowing US 10-year yield advantage versus its Chinese counterpart. Currency traders and investors usually use the yield gap between the world’s two largest economies as a key indicator of the relative value of the two respective currencies. The yield gap between the benchmark 10-year Chinese bonds and Treasuries narrowed to -3 basis points from roughly -15 bps last week, as US bond prices rose amid worries over a global recession. In the forward market, the benchmark one-year dollar/yuan swaps bounced to a three-week high of -182.5 points, from -280 points on Friday. Prior to market opening, the People’s Bank of China set the midpoint rate at 6.7071 per dollar, 208 pips or 0.3 percent weaker than the previous fix 6.6863. In the spot market, the onshore yuan opened at 6.7010 per dollar and was changing hands at 6.6921 at midday, 99 pips firmer than the previous late session close. Traders said the strength in the yuan on Monday also came as China’s central bank made the smallest daily cash injection through open market operations in one-and-a-half year, resulting in a net withdrawal of 97 billion yuan ($14.50 billion)for the day. Chinese stocks rise China stocks rose on Monday supported by healthcare shares and the launch of cross-border investment scheme ETF Connect, while Hong Kong shares slipped weighed by airline operators. China’s blue-chip index CSI300 rose 0.7 percent and the Shanghai Composite index gained 0.5 percent. In Hong Kong, the benchmark Hang Seng index dipped 0.1 percent. Evergrande canvassing creditors’ support China Evergrande Group is reaching out to its offshore creditors for their support to fight a lawsuit in a Hong Kong court aimed at liquidating the embattled property developer, according to a person with direct knowledge of the matter. Evergrande, which is deemed to be in default on its nearly $23 billion of offshore debt and is working on a debt restructuring plan, aims to submit the backing of creditors as part of the evidence to the court ahead of the first hearing on the winding-up petition on Aug. 31, the person said. Last week, Top Shine Global Ltd, an investor in Evergrande unit Fangchebao, said it had filed a winding-up petition against the developer as it had not honored a pact to repurchase shares from Top Shine in Fangchebao. A successful outcome of the petition could impact the developer’s debt restructuring plan by diminishing the value of the overseas assets that are central to the interests of offshore creditors. The developer was not considering an out-of-court settlement with Top Shine at the moment, the source said. (With input from Reuters)