UPDATE 1-PRESS DIGEST - China - July 4

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BEIJING/SHANGHAI, July 4 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Friday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- Transportation restrictions this summer in Beijing due to the Olympics have tightened the beer supply in the city. Many brewers have chosen to promote high-end products in Beijing in an effort to offset rising transportation costs.

SHANGHAI SECURITIES NEWS

-- A China Eastern Airlines (600115.SS) (0670.HK) executive said the airline has not given up talks with Singapore Airlines (SIAL.SI) on a strategic partnership, denying a media report that Singapore Air might have had second thoughts on a tie-up as oil prices surge.

-- China's Southern Fund has received approval to open a branch in Hong Kong, in partnership with Hong Kong-based Oriental Patron Financial Group. It was the first mainland-based fund house to receive such approval.

-- Agricultural Bank of China has extended 30.7 billion yuan ($4.48 billion) in credit to 18 large companies in earthquake-hit Sichuan province, including Sichuan Changhong (600839.SS), Panzhihua Iron and Steel (Group) Co, and provincial branches of China Mobile (0941.HK) and China Telecom (0728.HK).

-- Ping An Insurance (Group) Co of China (601318.SS) (2318.HK) issued a statement late on Thursday that it would not take any impairment charges for the first half-year related to its investment in Dutch-Belgian financial services group Fortis (FOR.BR), the second time in as many days the insurer issued a statement to address market rumours after a steep two-day slide in its share price.

FINANCIAL NEWS

-- Nearly 90.85 percent of business outlets in major areas that will receive Olympic-related visitors were able to handle foreign currency banking cards by the end of June, 65 percent more than a year earlier.

CHINA DAILY (www.chinadaily.com.cn)

-- China denied reports of encouraging its firms to purchase overseas farmland, saying the country is fully capable of ensuring its own food security.

-- Officials in southwestern Guizhou province have admitted for the first time after a violent protest on June 28 sparked by the alleged killing of a 17-year-old girl that residents of Weng'an county had been harbouring grievances over a range of issues including mine disputes and house demolitions.

-- China's quality watchdog said two Guangdong toy companies on Thursday recalled two products that failed to meet safety standards.

PEOPLE'S DAILY