PRESS DIGEST - China - Aug 14

BEIJING/SHANGHAI, Aug 14 (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.

FINANCIAL NEWS

-- The People's Bank of China, the country's central bank, agreed to offer 20 billion yuan ($2.92 billion) in loans in the rest of the year for reconstruction in Sichuan province after the devastating May earthquake.

-- China and Russia signed a memorandum of understanding on cooperation to supervise securities markets. China has signed similar MOUs with 36 countries aiming to promote healthy development in the capital markets.

CHINA DAILY (www.chinadaily.com.cn)

-- The revised version of the foreign exchange management rule marks significant progress in China's scheme of managing foreign exchange because it has laid a foundation for free exchange of the yuan in the future. Although the new stipulation does not mean liberalising the capital account, it has taken effective measures to facilitate the scheme of forming the exchange rate as well as cross-border capital flows.

-- Officials denied charges that the Beijing Olympics had put pressure on water supplies in and around the capital. The capital used more recycled water, which accounted for 60 percent of the water consumed by the city's expanded greening project.

PEOPLE'S DAILY

-- The State Council, or cabinet, has approved a master plan on the country's use of land and the government will make efforts to keep its farm land above 120 million hectares by 2020.

-- The central bank has lowered down payments and mortgage loan rates for residents buying apartments in quake-hit Sichuan province.

CHINA SECURITIES JOURNAL

-- Baosteel Group, China's largest steel maker, is likely to participate in an asset restructuring by Panzhihua Iron and Steel Group, analysts said, although officials at Baosteel said they had no information about the plan.

-- China is studying and will issue a series of measures to support the country's textile industry, a senior official at the Ministry of Industry and Information Technology said. The measures would include favourable policies toward credit, taxation and innovation.

-- China Life Insurance Co Ltd (601628.SS)(2628.HK), the country's top life insurer, said its premiums totalled 203 billion yuan for the first seven months of the year.

SHANGHAI SECURITIES NEWS

-- Beijing Centergate Technologies 000931.SZ, which could be a vehicle for a mainland listing by Gome Electrical Appliance (0493.HK), said its restructuring had become stalled as its controlling shareholder was reconsidering the plan.

SECURITIES TIMES

-- Guangdong Electric Power Development Co (000539.SZ) incurred a net loss in the first half due to soaring prices of thermal coal.

CHINA BUSINESS NEWS

-- China is seeking an appropriate time to raise water prices, Hu Siyi, Vice Minister of Water Resources, said in an interview. ($1=6.857 Yuan) (Compiled by Beijing and Shanghai Newsrooms; Editing by Edmund Klamann)