PRESS DIGEST - Hong Kong - June 17

HONG KONG, June 17 (Reuters) - These are some of the leading stories in Hong Kong newspapers on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

HONG KONG ECONOMIC JOURNAL

- DBS took the lead and announced on Monday it would raise the mortgage rate by 20 basis points to 2.7 percent from 2.5 percent, while other major banks stayed on the sidelines.

- Air China (0753.HK) carried 10.7 percent fewer passengers in May amid slower demand and the cancellation of 985 flights after the earthquake in Sichuan.

HONG KONG ECONOMIC TIMES

- Hong Kong banks are seen facing pressure and may raise interest rates due to higher interbank rates, despite expectations that the U.S. may leave rates unchanged next week.

SOUTH CHINA MORNING POST

- Intelligence shows some people are planning to come to the city to disrupt the Olympic equestrian events in August, including terrorists, Immigration chief Simon Peh warned. But police and a government spokesman said they were not aware of such threats.

- China Securities Regulatory Commission has granted two licences to China Euro Securities, a 33.3 percent-owned joint venture of CLSA Asia Pacific Markets, allowing it to deal in A shares, to distribute Chinese language research reports and advise mainland investors.

- America's National Basketball Association (NBA) will team up with Chinese firm JuneYao Group to open 2,000 retail outlets in China and the NBA will open a flagship store in Beijing next month, according to JuneYao's chief executive, Brian Huang.

- China is expected to overtake the United States as the most popular destination for corporate investment over the next five years as its expanding influence in telecommunications, industrial products and mining sectors attract global investors, according to a survey by international accounting firm KPMG.

THE STANDARD

- Seven candidates are expected to kick off their listing activities in the next two weeks, raising about HK$21 billion in the Hong Kong market.

For Chinese newspapers, see...............[PRESS/CN]

For Taiwan newspapers, see............[PRESS/TW]