Usborne Series: The Dragon and the Phoenix (Usborne First Reading Level 2)

'This is the story of Dragon Mountain, Phoenix Mountain and a shining lake.
It beings thousands of years ago, in China.....
Long, long ago, a dragon lived beside a magic river.
A dark forest grew on the other side of the river.
Deep inside the forest lived a phoenix.....'

Daily they go about their independent business until they meet on an island in the river.....and find a shiny pebble.
But this is no ordinary pebble as the pair find out....and when it attracts the Queen of Heaven, things change!

'....'The Dragon and the Phoenix' is based on 'The Bright Pearl', a folktale from China.
In Chinese stories, dragons and phoenixes are often shown together. Chinese dragons have lots of magical powers and can even fly without wings.'