PRESS DIGEST - China - May 19

BEIJING/SHANGHAI May 19 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Wednesday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- China's Ministry of Public Security has issued a series of regulations concerning illegal manipulation of Chinese securities and futures markets.

SHANGHAI SECURITIES NEWS

-- Large insurance companies led by China Life (2628.HK) started buying large amounts of funds last week, after China's stock market crashed due to a panic sell-off, sources from investment banks and funds said.

SECURITIES TIMES

-- China's Ministry of Land and Resources plans to step up regulation in exploration and mining of rare earth, as illegal mining persists.

CHINA BUSINESS NEWS

-- Changan Automobile Co (000625.SZ) and Volkswagen AG (VOWG.DE) are in talks to set up a joint venture to sell and produce Volkswagen commercial vehicles in China, a Changan source told the paper, adding there was no outcome from the talks yet.

FINANCIAL NEWS

-- China's PICC Group, the country's top non-life insurer, is looking for a strategic investor within the year and is preparing for listing, its president Wu Yan said.

-- The China Securities Regulatory Commission agreed to strengthen cooperation and exchange with the Kuwait Stock Exchange.

CHINA DAILY (www.chinadaily.com.cn)

-- Chances of an early revaluation of the yuan look unlikely and could happen much later than expected, considering that the nation's trade surplus may see steep erosions due to the European debt crisis and growing trade protectionist measures against China's exports, economists and experts said.

-- An updated standard for Internet map servers will be implemented next month to avoid state secrets being disclosed and uncertified maps published online.

-- The number of female smokers in the country may see a sharp rise as Chinese women have become the main target of tobacco companies, a government official said on Tuesday. Li Xinhua, a division chief with the Ministry of Health's department of women, children and community health, said Chinese female smokers will probably jump by 10 percent if the government does not impose stricter control.

PEOPLE'S DAILY

-- China and United States will hold a second round of Strategic and Economic Dialogue on May 24-25 and both sides will exchange ideas on some long-term and strategic issues, foreign ministry spokesman Ma Zhaoxu said.

-- Premier Wen Jiabao told visiting German President Horst Koehler that the impact from the global financial crisis on the world economy was more complicated and severe than people had expected and he urged the international community, in particular the major economies, to seek an effective mechanism to actively promote world economic recovery.