java - Confusion in declaring String Objects

If I declare a String as

String test=new String("testing");

and

String test1="testing1"

Since String is a class in JAVA how does test1 be a String Object without using a new Operator.Also,when a new Operator is used memory is assigned for new String("testing") so in the case of test1 how is the memory assigned?
Also,when the string is interned ,if two Strings have the same value with what reference is the String store once in the String intern pool?