UPDATE 1-PRESS DIGEST - China - July 10

BEIJING/SHANGHAI, July 10 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Friday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- A total of 17 trading accounts on the Shenzhen Stock Exchange are under investigation for suspected illegal trading, the exchange said.

-- Executives in securities brokerages and funds forecast relatively small profit for the debut of two companies -- Guilin Sanjin Pharmaceutical 002275.SZ and Zhejiang Wanma Cable 002276.SZ -- which float their shares in Shenzhen on Friday.

-- China Merchants Bank (600036.SS) said it was studying a plan to boost its capital but had not decided, playing down recent media reports that the company planned to raise about $3 billion through a rights issue.

-- Power generators Guodian Power (600795.SS) and China SDIC Huajing Power Holdings Co (600886.SS) said their power output in the first half fell from the same period last year as demand weakened in China due to the global economic crisis.

SHANGHAI SECURITIES NEWS

-- The China Banking Regulatory Commission has never loosened policies on bank loans to individuals for purchasing a second property, therefore, talk about the regulator tightening such policy was groundless, a commission official said.

SECURITIES TIMES

-- Yunnan Copper (000878.SZ) said it expects to lose 126 million yuan in the first half, despite it seeing profits in the second quarter due to rising copper prices.

FINANCIAL NEWS

-- Bank of East Asia (0023.HK), the only foreign bank with a branch in Urumqi, capital of the Xinjiang region, resumed operations on Thursday after closing for three days due to rioting in the city.

-- A consortium of Chinese insurance companies have inked a deal to provide 22 billion yuan of insurance to a nuclear power plant to be built in eastern Shandong province.

CHINA DAILY (www.chinadaily.com.cn)

-- China is considering introducing some policies to help 140 million farmers-turned-migrant workers settle down in cities.

-- Nine people in southern China's Guangdong province were sentenced to jail terms ranging from six months to four years after being convicted of using a banned additive to raise or sell pigs.