UPDATE 1-PRESS DIGEST - China - Oct 7

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BEIJING/SHANGHAI, Oct 7 (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.

FINANCIAL NEWS

-- Guo Shuqing, chairman of China Construction Bank (0939.HK)(601939.SS), said the lender would have not face difficulties reaching its annual profit target despite the domestic economic slowdown.

CHINA DAILY (www.chinadaily.com.cn)

-- Property transactions in China's major cities hit a record low over the National Day holidays as many potential homebuyers adopted a wait-and-see attitude.

-- The fortunes of China's richest billionaires are shrinking rapidly due to slumps in the country's stock and property markets.

PEOPLE'S DAILY

-- Water demand in the Chinese capital of Beijing is estimated to reach 3.89 billion cubic metres this year and would face 300 million cubic metres of water shortage if no water were imported from neighbouring provinces.

-- China has found a molybdenum mine with potential reserves of 254,000 tonnes in the island province of Hainan.

-- State-owned chemicals giant ChemChina has sold 20 percent of its China National Bluestar Corp, a chemical maker, to Blackstone Group (BX.N) for an amount of up to $600 million.

CHINA SECURITIES JOURNAL

-- Nineteen Chinese commodities futures contracts fell their daily limits on Monday.

-- Large-lot sales of shares on the off-market trading system shrank by 67 percent from the previous month in September.

-- Securities industry officials expect as many as three to five brokerages to take part in the launch of margin trade and short-selling of stocks; between 50 and 150 individual stocks may be included in the scheme.

SHANGHAI SECURITIES NEWS

-- Expectations are growing in China's financial markets for more interest rate cuts; a report by China International Capital Corp said that over the next 12 months, benchmark lending rates could be cut by 108-162 basis points, deposit rates by 54-108 bps, and reserve ratios by 400-600 bps.

-- Shares in Beijing Sanyuan Foods Co (600429.SS) remain suspended amid speculation that the government may engineer a takeover by it of Sanlu Group, the company at the centre of a scandal over chemically contaminated milk.

-- Chinese auto sales were not as strong as expected during the long national holiday and industry executives said that if they do not revive, there will be another round of price-cutting at the end of this year.

-- A study by this newspaper and Shenyin & Wanguo Securities found the stock market experienced a net capital outflow of 19 billion yuan ($2.8 billion) in September, bringing the net outflow for the past two months combined to 60 billion yuan.

SECURITIES TIMES

-- Guangdong Development Bank, 20 percent owned by Citigroup (C.N), has completed the issuance of 5 billion yuan of bonds, bringing its capital adequacy ratio up to 10 percent for the first time in 20 years. ($1 = 6.84 yuan) (Compiled by Beijing and Shanghai Newsrooms; Editing by Edmund Klamann and Ken Wills)