PRESS DIGEST - Hong Kong - July 7

HONG KONG, July 7 (Reuters) - These are some of the leading stories in Hong Kong newspapers on Monday. Reuters has not verified these stories and does not vouch for their accuracy.

HONG KONG ECONOMIC TIMES

-- The average investment return of MDF funds, subscribed by more than 200 employees in Hong Kong, dropped 9.29 percent in the first half of the year. The fall was the largest half-year decline ever.

APPLE DAILY

-- Hong Kong's second-hand property market has dropped to its lowest level in 2.5 years in terms of the number of transactions, according to real estate agency Centaline. Property circles believe values will fall in the second half by five to 10 percent.

MING PAO DAILY NEWS

-- Entertainment company SMI Corporation, which suspended share trading for more than three years, announced its annual results for the past three fiscal years. There were losses for all three years but they had narrowed to HK$24.98 million for 2007/08, compared with HK$87.92 million in 2005/06.

SING TAO DAILY

-- HKEx (0388.HK: Quote, Profile, Research) started to accept applications for the issuance of Hong Kong depository receipts by foreign enterprises this month, but it has received none so far. Investment group Citi predicts the first will be launched by the end of the year and the likely candidate will be in the petroleum and mining sector.