PRESS DIGEST - Hong Kong - July 8

HONG KONG, July 8 (Reuters) - These are some of the leading stories in Hong Kong newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

SOUTH CHINA MORNING POST

-- Cross-border yuan trade settlements could result in almost US$2 trillion of China's annual trade being conducted in the yuan currency within three years, making it one of the world's top three currencies, according to HSBC (0005.HK) economist Qu Hongbin.

WEN WEI PO

-- Sinopharm Holdings, a top China pharmaceutical group, plans to list its H-shares in Hong Kong in October, raising 7 billion yuan ($1.03 billion), according to a company spokesman.

TA KUNG PAO

-- Many mainland companies are seeking to list in Hong Kong because of the recent warm market response toward IPOs. Five Shandong companies have filed applications and 10 more are preparing applications, according to a vice-director of Shandong's provincial Development and Reform Committee.

APPLE DAILY

-- By increasing down payments to 40 percent from 20 percent and cancelling a 30 percent interest rate discount, commercial banks in Hangzhou, capital of Zhejiang Province, have tightened lending to people buying second homes. Market forecasts expect the move to result in a sharp decrease in property deals in Hangzhou.

HONG KONG ECONOMIC TIMES

-- Beijing-based building materials company BBMG has attracted five cornerstone investors -- China Life (2628.HK), BOC Investment, and investment funds Macquarie Funds, TPG and Och-Ziff Capital Management Group. The funds will each invest $30million to $35 million, according to market sources.

-- Following the introduction of charges for plastic bags, Hong Kong's government is set to charge for electrical appliance recycling as the next step in the government's environmental policy, according to Edward Yau, environment secretary.

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