UPDATE 1-PRESS DIGEST - China - March 13

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BEIJING/SHANGHAI, March 13 (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

-- Fan Fuchun, vice chairman of the China Securities Regulatory Commission, said development of the capital markets required improvement of the tax system, including steps to encourage long-term holding of stocks. He also said authorities were working to reform the system of issuing new shares slightly, and that major changes were not envisaged for now.

SHANGHAI SECURITIES NEWS

-- The general manager of China's State Development and Investment Corp, the country's biggest state-owned investment holding company, said the company aimed eventually to list on the stock market as a single enterprise. He said the financial industry would in future attract about one-third of its investment.

-- Harbin Pharmaceutical Group Co (600664.SS: Quote, Profile, Research, Stock Buzz) said a shareholders' meeting had rejected its proposal to reform its state shareholding structure.

SECURITIES TIMES

Fund managers contacted after Wednesday's 2.30 percent fall of the Shanghai Composite Index .SSEC generally said they remained pessimistic about the stock market, and were continuing to reduce thir holdings.