SHANGHAI, May 20 (Reuters) - China's yuan eased slightly
against the dollar on Monday, as investors studied Beijing's
latest measures to rescue its beleaguered property sector, which
has been a key drag on the world's second-largest economy.
    Beijing announced "historic" steps on Friday to stabilise
its crisis-hit property sector, with the central bank
facilitating 1 trillion yuan ($138.30 billion) in extra funding
and easing mortgage rules, and local governments set to buy some
apartments.
    But analysts said details of how the plan would work were
still being awaited.
    "After Friday's announcement, there are a few factors yet to
be disclosed and verified before we treat this as a substantial
pivot in governmental policy," analysts at Barclays said in a
note.
    They said they would be looking to the extent of the
government guarantee, the pricing mechanism and the policy life
of such measures to be implemented.
    Prior to 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 7.1042 per dollar, 3 pips
firmer than the previous fix of 7.1045. 
    Despite the slightly firmer yuan midpoint, the central bank
continued its months-long practice of setting the rate at levels
firmer than market projections, widely viewed by traders as an
attempt to keep the currency stable.
    Monday's official fixing was 1,120 pips stronger than a
Reuters estimate of 7.2162.
    In the spot market, the onshore yuan opened at
7.2285 per dollar and was changing hands at 7.2307 at midday, 53
pips softer than the previous late session close.
    Currency traders also noted that dollar buying demand
remained high to pile some downside pressure on the local
currency, adding that the traditional dividend payment season
was looming and rebounds in the yuan could be quickly offset by
such foreign exchange needs.
    Overseas-listed Chinese companies usually have to make such
foreign exchange purchases to fulfill dividend payouts to their
offshore shareholders between May and August. HSBC expects $66
billion worth of dividends to be made this year.
    Separately, investors took China's decision to leave
benchmark lending rates unchanged in stride, as monthly fixings
of loan prime rate (LPR) came in line with market expectations.

By midday, the global dollar index rose to 104.476
from the previous close of 104.445, while the offshore yuan
 was trading at 7.239 per dollar. 
    
    The yuan market at 0309 GMT: 
    
    ONSHORE SPOT:
 Item               Current  Previous  Change
 PBOC midpoint      7.1042   7.1045    0.00%
                                       
 Spot yuan          7.2307   7.2254    -0.07%
                                       
 Divergence from    1.78%              
 midpoint*                             
 Spot change YTD                       -1.84%
 Spot change since 2005                14.46%
 revaluation                           
    
*Divergence of the dollar/yuan exchange rate. Negative number
indicates that spot yuan is trading stronger than the midpoint.
The People's Bank of China (PBOC) allows the exchange rate to
rise or fall 2% from official midpoint rate it sets each
morning.

  OFFSHORE CNH MARKET     
 Instrument            Current   Difference
                                 from onshore
 Offshore spot yuan    7.239     -0.11%
        *                        
 Offshore              7.022     1.17%
 non-deliverable                 
 forwards                        
               **                
 
*Premium for offshore spot over onshore
**Figure reflects difference from PBOC's official midpoint,
since non-deliverable forwards are settled against the midpoint.
. 


($1 = 7.2308 Chinese yuan)

 (Reporting by Shanghai Newsroom; Editing by Sam Holmes)