UPDATE 1-PRESS DIGEST - China - June 4

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BEIJING/SHANGHAI, June 4 (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 rapid economic growth has driven up prices of food and agricultural products, the main cause of high consumer inflation, according to a paper written by Zhang Yongjun, a researcher with the State Information Center, a key government think-tank. He said the government should slow economic growth to stablise prices.

-- Analysts believe signs are mounting that China will alter its fiscal policy from "stable" to "active" to support reconstruction IN earthquake-hit Sichuan province, according to a front-page commentary.

-- Commission income at Chinese securities brokerages were 10.6 billion yuan ($1.53 billion) in May, basically the same level as in April.

-- The Shanghai Stock Exchange will adjust the constituent components of several indexes, including the CSI 300 .CSI300 index of Shanghai- and Shenzhen-listed shares, effective from the first trading day in July.

-- Shanxi Taigang Stainless Steel Co (000825.SZ), China's largest stainless steel producer, is expected to post a marked increase in second-quarter net profit compared with the first quarter due to gains in its carbon steel business, an analyst said.

-- Heavy flows of speculative "hot money" into China are not likely to ease in the near future due to the strong outlook for yuan appreciation, analysts said.

SHANGHAI SECURITIES NEWS

-- Property developer China Vanke Co (000002.SZ) has accumulated 2.16 billion yuan worth of its own shares for an executive incentive programme.

-- China Oilfield Services Ltd (2883.HK) (601808.SS) Chief Executive Yuan Guangyu told a shareholders' meeting the company was always seeking opportunities for overseas acquisitions and would try to show some results from those efforts this year.

SECURITIES TIMES

-- The China Iron and Steel Association is urging Chinese steelmakers to abide by a central government order to stabilise steel prices in earthquake-hit areas of southwest China and to ensure they have access to adequate steel product supplies.

FINANCIAL NEWS

-- The central bank should stick to its tight monetary policies, but fiscal policies should also play a bigger role to boost domestic consumption and balance international payments, the paper said in a commentary.