PRESS DIGEST - China - April 25

BEIJING/SHANGHAI, April 25 (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

-- An official at the China Securities Regulatory Commission said it would at an appropriate time, depending on demand in the market, permit brokerages to finance investment through lending and borrowing of securities. A pilot programme for the reform was announced in 2006 but has been on hold since then.

SHANGHAI SECURITIES NEWS

-- After the Shanghai Composite Index's .SSEC leap over the past two days, analysts say the stock market may consolidate in the short term but will probably remain in a longer-term uptrend. Galaxy Securities analyst Li Feng said that in the absence of major surprises, a long-term floor for the index had probably been established at this week's low of 2,990 points.

-- Some speculative money has started to flow from China's commodity futures markets to the stock market because of the rebound in equities, brokerage officials say.

-- CSRC Chairman Shang Fulin called for strict enforcement of rules governing brokerages to protect the rights of investors.

-- Two smaller brokerages reported weak first-quarter earnings because of the stock market's slump during the period. Hongyuan Securities 000562.SZ said net profit fell 2 percent from a year earlier, while Pacific Securities (601099.SS: Quote, Profile, Research, Stock Buzz) posted a loss of 250 million yuan ($35.8 million), becoming the first brokerage to report a loss for the first quarter.

21ST CENTURY BUSINESS HERALD