PRESS DIGEST - China - June 23

BEIJING/SHANGHAI, June 23 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Monday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- Galaxy Securities said in a report that the A-share market had fallen to undervalued levels so there was likely to be a rebound in the second half of this year. It cut its forecast for corporate earnings growth in 2008 to around 20 percent, but said fair value for the Shanghai Composite Index .SSEC, last at 2,831 points, was at least 3,700.

SHANGHAI SECURITIES NEWS

-- China Gezhouba Group Co (600068.SS) said it was launching an offer of 1.39 billion yuan ($202 million) of six-year convertible bonds with detachable warrants. The bonds will carry a coupon of between 0.60 and 1.50 percent.

-- Grinm Semiconductor Materials Co (600206.SS) said its controlling shareholder, the Beijing General Research Institute for Nonferrous Metals, had promised not to sell off 14.5 million newly tradable shares in it for a further two years, after a lock-up period covering the shares expired.

-- An economic seminar sponsored by the Chinese Academy of Social Sciences heard that the economy's long-term trend of rapid growth would not change, but that inflation would remain high next year.

-- Sinolink Securities (600109.SS) and Jiuzhitang Co (000989.SZ) said Chen Jinxia, the widow of their controlling shareholder Wei Dong, was taking over control of the companies after Wei's sudden death last month.

-- Yangtze Power (600900.SS), which suspended its shares in early May as it began discussing a restructuring with regulators, said the shares would remain suspended as discussions continued. The company's parent group, which operates the Three Gorges project, is planning a listing of its major assets.

FINANCIAL NEWS

-- China's summer grain harvest is estimated to exceed 120 million tonnes, up 2.5 million tonnes from last year, the Agricultural Ministry said. Rapeseed output reached 11.85 million tonnes this year, up more than 400,000 tonnes from last year.

-- China's automobile output will exceed 10 million in 2008, up about 15 percent from last year, the China Association of Automobile Manufacturers said.

CHINA DAILY (www.chinadaily.com.cn)

-- China's National Development and Reform Commission urged manufacturers to limit product price hikes and cut production costs to partly digest fuel price rises.

-- China published guidelines for mainland travellers to Taiwan, which include no gambling, no buying or selling of pornographic material, and not indulging in any other activities that could hamper mainland-Taiwan ties.

-- China's meteorological chief urged the country's weather forecasters to provide more accurate forecasts as heavy rainstorms hit the country's southern and eastern regions.

-- China Development Bank, one of the country's three policy banks that lend on guidance from the government, will transform into a commercial bank before the end of June, sources said. ($1 = 6.88 yuan)