UPDATE 1-PRESS DIGEST - China - May 7

(Adds items)

BEIJING/SHANGHAI, May 7 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Wednesday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

-- The Shenzhen Stock Exchange has punished Fujian Henglian Co for breaking the China Securities Regulatory Commission's (CSRC) new restrictions on sales of shares freed up by the expiry of lock-up periods. Fujian Henglian sold off 1.19 percent of shares in Fujian Guanfu Modern Household Wares Co 002102.SZ between April 21 and May 6. The exchange banned Fujian Henglian from securities trading for 15 trading days, and said it would take further action against the company. Meanwhile, the CSRC is investigating a similar case involving shares in Sichuan Hongda (600331.SS).

SHANGHAI SECURITIES NEWS

-- The State-owned Assets Supervision and Administration Commission has given three big state-owned groups -- Guodian Group, COFCO and Poly Group -- instructions to develop their business more rapidly to gain better control over key economic areas such as energy and mining resources.

SECURITIES TIMES

-- Officials at Ping An Insurance (601318.SS) declined to comment on speculation that it might conduct its plan for a huge equity issue in both Shanghai and Hong Kong.

-- This year's corporate tax reforms, which reduced the burden on many domestic companies, boosted net profits at listed firms by an estimated 22.2 billion yuan ($3.2 billion) in the first quarter.

FINANCIAL NEWS

-- China has enough grain reserves to ensure domestic supplies and keep prices stable, said an official from the National Development and Reform Commission, the top economic planner.

-- South Korea's second-biggest bank, Shinhan Bank, has won Chinese regulatory approval for local incorporation, and the subsidiary will open on Monday.

CHINA DAILY (www.chinadaily.com.cn)

-- China's Foreign Ministry denied it had stopped issuing multiple-entry visas to foreigners but admitted the country had tightened scrutiny ahead of the Olympic Games.

-- Beijing has issued a nationwide alert to help prevent the spread of an outbreak of hand-foot-mouth disease that has so far resulted in a surge of reported cases to 15,799 as of Tuesday, up from 11,905 on Monday.

-- Local authorities in eastern Anhui province have punished 10 doctors and officials for "malpractice" relating to the outbreak of hand-foot-mouth disease, which has caused 22 deaths in the province. At least two of the doctors were given demerits for delays in moving their patients to county hospitals.