July 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 NEWS

- The China Banking Regulatory Commission (CBRC) told banks on Thursday to properly set loan terms for small and micro enterprises in order to avoid a mismatch between loan term and operating cycle. The commission also asked lenders to diversify loan products to better meet financing needs of companies and reduce their repayment burdens.

SHANGHAI SECURITIES NEWS

- The Agricultural Bank of China, the country's third-largest lender, will start offering interest rate discounts for first-home mortgages next month in Shanghai. The bank will offer discounts of 5 percent from the benchmark lending rate for customers with sound credit history, the bank said.

SECURITIES TIMES

- The China Banking Regulatory Commission rolled out specific measures on Thursday asking financial institutions to facilitate loan renewals for eligible small and micro enterprise without limited frequency.

SHANGHAI DAILY

- The Shanghai Audit Office reported that 3.09 billion yuan ($498.8 million) from 67 government-invested or dominated projects was misappropriated in 2013, while about 24 projects had cost overruns on unauthorised changes on project construction or deviation from original pricing plan.

PEOPLE'S DAILY

- China should take the Sino-Japanese War of 1894 as a lesson and be alert to the challenges presented by hegemonism and power politics, the paper said in a commentary.

For Hong Kong and South China newspapers see..... ($1 = 6.1955 Chinese Yuan) (Reporting by Shanghai Newsroom; Editing by Prateek Chatterjee)