UPDATE 1-PRESS DIGEST - China - June 15

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BEIJING/SHANGHAI, June 15 (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

-- China will keep its monetary policy loose but stable in the second half of this year and needs to closely monitor signals of possible inflation, although it is now still in an extended period of deflation, said Chen Dongqi, vice head of a think tank under the National Development and Reform Commission.

-- The average equity holdings of 254 stock-focused mutual funds monitored by Bohai Securities Co stood at 73.64 percent last week, down 1.79 percentage points from the previous week.

-- Liu Mingkang, chairman of the China Banking Regulatory Commission, forecast that the country's gross domestic product would grow about 8 percent this year.

-- Changjiang Securities Co (600325.SS) plans to start a private equity business and will submit an application soon to the China Securities Regulatory Commission.

SHANGHAI SECURITIES NEWS

-- China's environmental regulator will suspend new project approvals for Huaneng Power (600011.SS) and Huadian Power (600027.SS), punishing them after they started projects without the watchdog's consent.

CHINA BUSINESS NEWS

-- Beijing Automobile Industry Corp has made no progress on overseas acquisitions after expressing interest in Chrysler, Opel, Saab and Volvo, so it will not engage in such talks in the future, a person familiar with the situation said.

CHINA DAILY (www.chinadaily.com.cn)

-- The developer of a controversial filtering software Green Dam, which the government has ordered to be pre-installed in all new computers sold in China, has been told to rush software patches to address security problems that have cropped up.

-- China's anti-terrorism drill, dubbed "Great Wall No. 6", started in Inner Mongolia and moved on to Shanxi last week, will be extended to Hebei Province later this month, in preparation for the Oct. 1 National Day celebrations.

-- The military said it would offer soldiers a new menu with higher protein content, bringing the People's Liberation Army's nutritional standards closer to those of developed nations.

PEOPLE'S DAILY

-- Premier Wen Jiabao reiterated that economic recovery was not yet firmly rooted and stressed the government would adjust its stimulus package if needed to meet changing economic conditions.

-- More than two-thirds of official websites operated by ministries, provinces and cities have not been updated in a timely or adequate manner this year.