UPDATE 1-PRESS DIGEST - China - May 15

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BEIJING/SHANGHAI, May 15 (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.

CHINA SECURITIES JOURNAL

-- China will set up a foreign exchange transaction settlement entity as part of its efforts to reduce credit and settlement risk in currency transactions and bring more non-financial insitutions into the market, according to an authoritative source.

-- Liuzhou Iron and Steel (601003.SS) said it plans to issue up to 2 billion yuan ($286 million) in convertible bonds with detachable warrants to repay bank loans and bolster its cash position.

-- Securities regulators in southwestern China's Sichuan Province called on investors to trade shares via telephone or online instead of at brokerages due safety concerns. A 7.9 magnitude earthquake hit the province on Monday.

SHANGHAI SECURITIES NEWS

-- The Shenzhen stock exchange said shares in nine of 19 Sichuan-area companies would resume trading on Thursday, after a halt earlier this week pending information on the impact of a devastating earthquake in the area. They will begin trade one hour after normal share trade begins. The remaining 10 shares will remain suspended.

FINANCIAL NEWS

-- China's banks had total non-performing loans of 1.2 trillion yuan ($171 billion) by the end of March, with the non-performing loan ratio at 5.8 percent, down 0.38 percentage points from the beginning of the year.

-- China's financial regulators have taken urgent measures to ensure stability and help with the relief and reconstruction of the areas hit by the earthquake.

CHINA DAILY (www.chinadaily.com.cn)

-- A farmer in Shaanxi province loaded his truck with 50,000 yuan worth of instant noodles and water, which he drove to Chengdu on Wednesday afternoon.

-- China Eastern Airlines plans to raise at least 15 billion yuan, by reviving the sale of a stake to Singapore Airlines, by tapping capital markets and by seeking government subsidies, in order to buy more new planes and train more cabin crews.

PEOPLE'S DAILY

-- Thailand's prime minister postponed his visit to Beijing because of the earthquake in China's Sichuan province.

-- China's Ministry of Civil Affairs said it had received donations worth 877 million yuan by Wednesday for the areas hit by the deadliest earthquake in decades. ($1=7.002 Yuan)