UPDATE 1-PRESS DIGEST - China - May 7

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BEIJING/SHANGHAI, May 7 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Thursday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- China's State Council, or cabinet, has approved 20 billion yuan ($2.93 billion) in spending to support technological innovation, mainly via subsidised loans, in key sectors including steel, non-ferrous metals, clean-energy cars and 3G mobile phone service, that it said would stimulate 460 billion yuan in investment.

-- Bank of America Corp (BAC.N) has not informed China Construction Bank (601939.SS)(0939.HK) that the it will sell its stake in China's second-largest bank, a CCB spokesman said.

-- Frank Gong, chief China economist at JPMorgan Chase, said the momentum for China's economic recovery may accelerate in the second quarter on the Chinese government's support plans.

-- China Minsheng Banking Corp Ltd (600016.SS) said it has received regulatory approval to open a branch in eastern China's Jiangxi province.

-- Incomes of China's registered accountants in 2008 rose 12 percent from a year earlier to 31 billion yuan, an industry group executive said.

SHANGHAI SECURITIES NEWS

-- China's State Council has approved the merger of the Shanghai Pudong New District with the neighbouring Nanhui district, the Shanghai municipal government said.

-- China's Everbright Securities, which plans to sell its shares in an initial public offering, said its net profit rose 20 percent in the first quarter to 560 million yuan.

-- Beijing Capital Tourism Co Ltd (600258.SS) said its shares would be suspended from trading for up to 30 days as it plans to acquire a major asset through a private share placement.

-- China North Optical-Electrical Technology Co Ltd (600435.SS) said it had won regulatory approval for a private share placement worth up to 802 million yuan for funding several projects.

SECURITIES TIMES

-- China Metallurgical Group Corp, a key contractor in a number of steel projects in China and abroad, has not yet won regulatory approval for its plan to launch an initial public equity offering in the mainland and Hong Kong, a company executive said.

CHINA BUSINESS NEWS