Chinese Initial Public Offering Indicator Reaches Historic High as Stock Markets Rebound

Chinese Initial Public Offering Indicator Reaches Historic High as Stock Markets Rebound

April 19, 2007

    SHANGHAI, China, April 19 /Xinhua-PRNewswire/ -- Xinhua
Finance Limited and the Milken Institute today release the
media update on the Chinese Initial Public Offering
Indicator for March.    

    March 2007: 244.5
    February 2007: 232.0
    Month-to-month change: 5.5%
    March 2006: 187.6
    Year-to-year change: 30.3%

    Please visit
http://www.xinhuafinance.com/en/charts/ipo_rpi/0704/ipo_chart_en.jpg
to download the chart.

    Highlights

    China's stock markets continued to rise in March,
despite slumps in late February; and the IPO Indicator
reached an historic high at the end of the period, up 12.5
points, to 244.5 from the previous month's score of 232.0.
Four equities were added to the indicator, which comprises
small and medium-sized enterprises listed on Shenzhen Stock
Exchange. 

    Analysis

    Of the ninety-two stocks included in the March
indicator, nineteen declined in price, while seventy-one
increased.  The rise in the IPO Indicator score is
attributable chiefly to gains in financial-sector stocks;
the Bank of China (A share, 601988; H share, 3988),
Industrial and Commercial Bank of China (A share, 601398; H
share, 1398), and Industrial Bank (A share, 601166) together
contributed to 58 percent of the increase in score.  Given
the large market-capitalization share of bank stocks in the
indicator, the sector will continue to influence scores.  In
addition, energy and infrastructure equities, including
China Coal (H share, 1898) and Daqin Railway (A share,
601006), showed ongoing strong performance.  Two companies
were removed from the indicator, and four newly listed
companies were added.
    
    Methodology

    A stock's float-adjusted market capitalization over
time forms the basis for indicator calculations.  Stock
dividends, stock splits, special dividends, share
consolidations, repurchases, spin-offs, and combination
stock distributions may trigger adjustments to the
indicator values.  Only companies incorporated and
domiciled in mainland China that go public on the Shanghai,
Shenzhen, and Hong Kong stock exchanges are included. 
Companies are removed from the indicator after a period of
twelve months.
    
    Xinhua Finance/Milken Institute China Indicators 

    The Xinhua Finance/Milken Institute China Indicators
are aimed at providing investors, analysts, and financial
professionals deeper insight into China's money and capital
markets.  Three of the eight indicators were launched in
November 2006: the Renminbi Pressure Indicator, the Chinese
IPO Indicator, and the Market Adjusted Debt (MAD) Indicator.
 The remaining indicators will be launched in 2007.

    Time Period Coverage and Frequency

    New companies are added to the indicator as soon as
they are listed, while current companies are removed after
twelve months.  The IPO Indicator has a base date of
December 31, 1997, when the indicator's value was set equal
to 100, and covers the period from December 31, 1991, to the
present.  Values are calculated on a monthly basis.  The
indicator for each month is released in the third week of
the following month. 

    Sources of Data

    The real-time and historical trading data used in the
construction of this indicator are provided by Bloomberg
and Xinhua Finance; underlying information used to
calculate the float ratio is obtained from a variety of
sources, including Xinhua Finance's subsidiary Mergent,
stock exchanges, regulators, and the companies themselves. 
Corporate actions are sourced from Xinhua Finance,
regulatory filings, and news services.

    To view additional information, visit
http://www.xinhuafinance.com/indicators and
http://www.milkeninstitute.org/chinaindicators . 

    Xinhua Finance Limited is China's unchallenged leader
in financial information and media, and is listed on the
Mothers board of the Tokyo Stock Exchange (symbol: 9399)
(OTC ADRs: XHFNY).  Bridging China's financial markets and
the world, Xinhua Finance serves financial institutions,
corporations and re-distributors through four focused and
complementary service lines: Indices, Ratings, Financial
News and Investor Relations.  Founded in November 1999, the
Company is headquartered in Shanghai with 20 news bureaus
and offices in 19 locations across Asia, Australia, North
America and Europe.  For more information, please visit
http://www.xinhuafinance.com . 

    The Milken Institute is a nonprofit, independent
economic think tank whose mission is to improve the lives
and economic conditions of diverse populations around the
world by helping business and public policy leaders
identify and implement innovative ideas for creating
broad-based prosperity.  The Milken Institute has extensive
expertise in China and conducts ongoing research on China's
banking and capital markets.  It is based in Santa Monica,
Calif. For more information, please visit
http://www.milkeninstitute.org .


    For more information, please contact:
 
    Xinhua Finance
    China
     Ms. Joy Tsang
     Tel:   [phone] or [phone]
     Email: [e-mail]
 
     Mr. Scott Zhang
     Tel:   [phone]
     Email: [e-mail]
 
    Japan
     Mr. Jiong Sun
     Tel:   [phone]
     Email: [e-mail]
 
    Taylor Rafferty (Media contact for Xinhua Finance)
    Japan
     Mr. James Hawrylak
     Tel:   [phone]
     Email: [e-mail]
 
    United States
     Mr. John Dudzinsky
     Tel:   [phone]
     Email: [e-mail]
 
    Europe
     Faisal Kanth 
     Tel:   [phone]
     Email: [e-mail]

    Milken Institute
     Ms. Jennifer Manfre
     Associate Director of Communications
     Tel:   [phone]
     Email: [e-mail]