PRESS DIGEST - China - Aug 19

BEIJING/SHANGHAI, Aug 19 (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

-- The central bank and other government departments are relaxing rules on corporate lending to support small and medium-sized companies with high employment. For example, a cap on guaranteed bank loans to such companies has been lifted to 2 million yuan ($291,000) from 1 million yuan.

SHANGHAI SECURITIES NEWS

-- Economists at major institutions, including Fudan University, Industrial Bank and the Chinese Academy of Social Sciences, say the yuan's trend of appreciation is unlikely to reverse any time soon. They also think the central bank's plan to create an offshore yuan market will eventually lead to more accurate pricing of the yuan.

-- China's securities regulator has approved the creation of two new mutual funds, one focusing on equities and one focusing on debt. Since the start of August, a total of two equities funds and six debt funds have been approved.

-- Minsheng Bank (600016.SS) said it had obtained regulatory approval to open a branch in the city of Changsha.

SECURITIES TIMES

-- Authorities may revise regulations to make it easier for small companies to issue short-term corporate bills on a large scale from late August or early September.

CHINA BUSINESS NEWS

-- Industry analysts believe China needs to raise electricity prices by at least 10 percent if it wants to help power producers reverse losses caused by this year's surge in coal prices. ($1 = 6.87 yuan)