UPDATE 1-PRESS DIGEST - China - May 27

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BEIJING/SHANGHAI, May 27 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Tuesday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- Guangdong Midea Electric Appliances Co (000527.SZ) said it was temporarily suspending a planned stock incentive scheme for employees because the plan, originally announced in January, contravened rules for stock incentives recently announced by the China Securities Regulatory Commission (CSRC). In mid-May, TBEA (600089.SS) suspended an incentive plan for similar reasons.

-- BOE Technology (000725.SZ) said it would boost its investment in its Chengdu technology subsidiary by a total of 1.07 billion yuan ($154 million) to help the subsidiary complete construction on schedule of its previously announced production line for 4.5-generation thin film transistor liquid crystal displays. It has already invested 240 million yuan of the amount.

-- A subsidiary of the Sinoma International Engineering (600970.SS) group has signed an 83.8 million euro ($132 million) contract to build a 6,000 tonnes per day cement plant for Vassiliko Cement Works in Cyprus.

- Nanjing Zhongbei Group Co 000421.SZ said it would establish a China joint venture with Veolia Transportation, part of France's Veolia Environnement SA (VIE.PA) group, to operate and manage public transport services.

SHANGHAI SECURITIES NEWS

-- Thirteen companies are expected to change or scrap stock incentive plans because they reward directors in ways which contravene the CSRC's new rules for such plans.

-- China's shipbuilders' association predicted demand for steel plate used in making ships would jump 28 percent this year to more than 12 million tonnes, and surge above 16 million tonnes next year.

FINANCIAL NEWS

-- Central bank governor Zhou Xiaochuan, during a visit to Chongqing, urged local branches to closely monitor the bad-loan rate and other impacts on financial institutions from the Sichuan earthquake. He also asked them to help prevent rapid growth of investment.

-- A report showed that Chinese banks may suffer losses of 5 billion to 13 billion yuan from the May 12 quake, with 7 billion yuan at the big four state-owned banks. The earthquake will also increase banks' non-performing loan ratio.

-- Ping An Insurance (601318.SS) paid 10 million yuan ($1.44 million) for one claim, the biggest single claim so far, to Dongfang Turbines Co to cover damage to 4 turbines after trucks carrying the turbines were buried in landslides triggered by the earthquake.

CHINA DAILY (www.chinadaily.com.cn)

-- The banking regulator ordered domestic banks to write off bad loans caused by the devastating earthquake in order to reduce the mortgage burden of survivors and help reconstruction efforts in Sichuan.

-- Helicopters air-dropped bulldozers and excavators to dig a channel to help drain a "quake lake" in Beichuan county. A dozen heavy machines were being employed to divert water from the swelling Tangjiashan lake, formed when a river was blocked by landslides.

PEOPLE'S DAILY

-- President Hu Jintao chaired a CPC Political Bureau meeting, urged more efforts for resettlement and post-quake reconstruction projects while also calling for economic development and social stability.

-- An editorial said the country is facing many new challenges with its post-earthquake reconstruction work, as aftershocks cause difficulties for relief workers and more than 14 million people need to be resettled. ($1=6.936 Yuan) (Compiled by Beijing and Shanghai Newsrooms; Editing by Ken Wills and Edmund Klamann)