UPDATE 1-PRESS DIGEST - China - May 15

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BEIJING/SHANGHAI, May 15 (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

-- China will set up a foreign exchange transaction settlement entity as part of its efforts to reduce credit and settlement risk in currency transactions and bring more non-financial insitutions into the market, according to an authoritative source.

-- Liuzhou Iron and Steel (601003.SS: Quote, Profile, Research, Stock Buzz) said it plans to issue up to 2 billion yuan ($286 million) in convertible bonds with detachable warrants to repay bank loans and bolster its cash position.

-- Securities regulators in southwestern China's Sichuan Province called on investors to trade shares via telephone or online instead of at brokerages due safety concerns. A 7.9 magnitude earthquake hit the province on Monday.

SHANGHAI SECURITIES NEWS

-- The Shenzhen stock exchange said shares in nine of 19 Sichuan-area companies would resume trading on Thursday, after a halt earlier this week pending information on the impact of a devastating earthquake in the area. They will begin trade one hour after normal share trade begins. The remaining 10 shares will remain suspended.

FINANCIAL NEWS