State Council's China Development Research Foundation Becomes Shareholder in Xinhua Finance

State Council's China Development Research Foundation Becomes Shareholder in Xinhua Finance

July 31, 2006

    SHANGHAI, China, July 31 /Xinhua-PRNewswire/ -- Xinhua
Finance Limited ("Xinhua Finance") (TSE Mothers:
9399 and OTC: XHFNY), China's unchallenged leader in
financial information and media, today announced the
updated information regarding the 10-year cooperative
agreement ("Agreement") on November 16, 2005
signed between China Development Research Foundation
("Foundation") founded by State Council's
Development Research Center of the PRC ("DRC")
and the Company, and announced details of the issuance of
its shares to the Foundation under the Agreement. 

    As announced in the press release of November 16, 2005,
the Foundation would become a shareholder of Xinhua Finance
and provide another key level of support in China, to help
further deepen Xinhua Finance's strong roots in the PRC. 

    The DRC is an elite research, analysis and consulting
group reporting directly to the State Council.  DRC
research and analysis helps inform government policy
development and implementation.  The Foundation was founded
by the DRC and is a non-profit organization that supports
and promotes government policy, conducts academic research
and provides consultative advice on China's social and
economic development issues. 

    Pursuant to the Agreement, the Foundation will provide
various consulting and advisory services to Xinhua Finance
in China, and 1,500 Xinhua Finance shares shall be issued
to the Foundation.

    Under the Agreement, the Foundation and Xinhua Finance
work together to raise standards in China's corporate and
financial market activities, and conduct seminars to
educate Chinese markets and corporations about
international standards and foreign investor requirements.


    Details of the issuance:

     1. No. of shares issued: 1,500 shares
     2. Issue price per share: JPY58,400 per share (being
closing share 
        price on July 25, 2006)
     3. Total amount of the issue price: JPY87,600,000
     4. Amount to be added to share capital: HK$20 per
share
     5. Date of issuance: July 25, 2006
     6. Consideration: the shares were issued for services
provided by the 
        Foundation under the Agreement and Xinhua Finance
has not received 
        any cash or tangible assets of such issued price

    About Xinhua Finance Limited

    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 . 

    For more information, please contact:

    Xinhua Finance

     Hong Kong / Shanghai
     Ms. Joy Tsang
     Tel:   [phone] or
[phone]
     Email: [e-mail]

     Japan 
     Mr. Sun Jiong
     Tel:   [phone]
     Email: [e-mail]

    Taylor Rafferty (IR Contact)

     Japan 
     Mr. James Hawrylak
     Tel:   [phone]
     Email: [e-mail]
 
     United States
     Ms. Ishviene Arora
     Tel:   [phone]
     Email: [e-mail]

     Europe
     Mr. John Dudzinsky
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Xinhua Finance Limited