SHANGHAI, July 15 (Reuters) - China's yuan weakened on
Monday from a one-month high against the dollar hit in the
previous session, following weaker-than-expected second-quarter
data that points to slowing economic momentum and the need for
more stimulus.
    China's economy expanded 4.7% in the second quarter from a
year earlier, official data showed on Monday, missing analysts'
expectations, even as policymakers seek to boost domestic demand
amid a protracted property downturn.
    "Overall, the disappointing GDP data shows that the road to
hitting the 5% growth target remains challenging, and we will
need to see further policy support in the coming months if this
goal is to be reached," said Lynn Song, chief economist for
Greater China at ING.
    At 0302 GMT, the yuan was 0.13% weaker at 7.2597
to the dollar after booking the biggest weekly gains last week
since late December.
    The yuan is still down 2.2% year-to-date. It has been under
pressure since early 2023 as domestic woes around a moribund
property sector, anaemic consumption and falling yields drive
capital flows out of the Chinese currency, and foreign investors
avoid its struggling stock market.
    Prior to the market opening, the People's Bank of China
(PBOC) set the midpoint rate, around which the yuan
is allowed to trade in a 2% band, at 7.1313 per dollar and 1,235
pips firmer than a Reuters' estimate.
    The central bank has been gradually lowering its daily yuan
official guidance, well within market projections but with a
bias suggesting it is allowing some depreciation, traders and
analysts said. 
    The offshore yuan traded at 7.2738 yuan per dollar,
compared with the previous close of 7.2710 on Friday.
    Meanwhile, top leaders are scheduled to start a
twice-a-decade policy meeting from Monday. With business,
employment and consumer sentiment near record lows, the four-day
plenum will seek to inject confidence in the economy, but
conflicting goals, such as boosting growth while cutting debt,
may mean little progress toward implementing change.
    "The meeting is unlikely to provide any immediate and
specific measures for the economy, as it will be focused on
guiding the long-term direction of the economy," said Alvin Tan,
head of Asia FX strategy at RBC Capital Markets.
    Separately, China's central bank left its medium-term
lending facility (MLF) rate unchanged as expected on Monday when
rolling over maturing medium-term loans. Beijing's easing
efforts continue to be constrained by a weak currency and
narrowing interest margins at banks.
 
Key onshore vs offshore levels:
    * Overnight dollar/yuan swap onshore -7.38 pips vs. offshore
-7.38
    * Three-month SHIBOR 1.9 % vs. 3-month CNH HIBOR
3.1 %

LEVELS AT 0302 GMT:
 INSTRUMENT   CURRENT    UP/DOWN(-)    % CHANGE    DAY'S HIGH  DAY'S 
              vs USD     VS. PREVIOUS  YR-TO-DATE              LOW
                         CLOSE %                               
 Spot yuan    7.2597     -0.13         -2.18       7.25        7.2638