Tokyo Stock Exchange Upgrades Settlement System for Xinhua Finance Shares

Tokyo Stock Exchange Upgrades Settlement System for Xinhua Finance Shares

May 11, 2006

Unified system expected to improve liquidity and trading efficiency

    SHANGHAI, China, May 11 /Xinhua_PRNewswire/ -- Xinhua
Finance (TSE Mothers: 9399, OTC ADR: XHFNY), China's
unchallenged leader in financial information and media,
today praised the Tokyo Stock Exchange's recent upgrade of
the settlement of non-Japanese TSE-listed stocks, which
places Xinhua Finance into the same settlement system as
Japanese domestic issuers.  As of May 1, 2006, trades of
both domestic and certain non-Japanese stocks, including
those of Xinhua Finance, will be settled on the JASDEC
(Japan Securities Depository Center, Inc.) system.  This
change is expected to allow easier settlement of trades by
both Japanese and international investors by providing a
consistent settlement process for TSE-listed companies.

    Please see the related TSE announcement in appendix. 

    Previously, trades in foreign stocks on the TSE were
settled through the JSSC system (Japan Securities
Settlement & Custody, Inc.).  However, many global
custodian banks and their sub-custodian banks in Japan did
not have accounts at JSSC, which made settlement of shares
such as Xinhua Finance difficult for certain foreign
investors.  The move to JASDEC is therefore expected to
give overseas investors access to all foreign stocks given
that a greater number of custodian banks have accounts with
JASDEC.  

    "Xinhua Finance was the first non-Japanese company
to list on the TSE Mothers, and this pioneering listing on
the TSE has been instrumental to the success of building
our healthy capital base and high quality
shareholding," Xinhua Finance CEO Fredy Bush said. 
"The upgraded TSE settlement system should further
improve the already strong demand for foreign companies'
shares in Japan."  

    Mr. Sun Jiong, Xinhua Finance Managing Director of
Investor Relations added, "We are very pleased with
the steps that the TSE has taken to streamline the
settlement of Xinhua Finance shares.  This step advances
the interests of both Xinhua Finance shareholders and the
TSE, and should encourage more international companies to
list in Japan."
As per the announcement from Tokyo Stock Exchange on April
21 (see appendix), a total of 27 foreign stocks will
transfer to the JASDEC system in two phases.  The first
phase, which includes Xinhua Finance, was executed on May
1, and the second phase is currently scheduled for sometime
in summer of this year.

    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 21 news bureaus
and offices in 18 locations across Asia, Australia, North
America and Europe. 

Appendix: Extract from the Tokyo Stock Exchange's press
release dated April 21, 2006

Schedule for Transfer of Handling of Foreign Stocks, etc.,
to the Japan Securities Depository Center (First Phase)

    As notified in TSE news on March 15, TSE has made a
partial revision to regulations such as listing standards
for equities with the commencement of handling of foreign
stocks, etc., by the Japan Securities Depository Center
(JASDEC).  The revised regulations will be applied
sequentially beginning with issues that are to be handled
by JASDEC.

    JASDEC is currently making preparations to begin
handling existing listed issues by dividing transfer of
these issues from depositories into two phases. It was
decided that for the first phase, JASDEC will begin
handling the issues listed on Table 1 as of the end of
working hours on Friday, April 28, 2006. TSE will apply the
revised regulations to these issues on Monday, May 1, 2006.

    The second phase of transfer is currently scheduled for
sometime in summer of this year.  The specific issues and
application date of the revised regulations will be
announced once the schedule is determined at JASDEC (please
refer to Table 2 for the provisional schedule).


(Table 1) First phase transfer (effective as of May 1,
2006) on TSE listed foreign stocks


    Code Issue                           Country  
Depository            
    4850 The Dow Chemical Company        USA       DTC     
             
    7661 The Boeing Company              USA       DTC     
             
    8634 JPMorgan Chase & Co             USA       DTC 
                 
    8648 Bank of America Corporation     USA       DTC     
             
    8675 Merrill Lynch & Co., Inc.       USA       DTC 
                 
    8685 American International Group,   USA       DTC     
             
         Inc.                                              
             
    8686 AFLAC Incorporated              USA       DTC     
             
    5412 POSCO (ADR)                     Korea     DTC     
             
    8990 Henderson Land Development      Hong Kong Standard
Chartered Bank
         Company Limited                           Hong
Kong             
    9399 Xinhua Finance Limited Cayman   Hong Kong Standard
Chartered Bank
         Islands                                   Hong
Kong             
    1773 YTL Corporation Berhad          Malaysia  Standard
Chartered Bank
                                                   Malaysia
Berhad       

    *The account balance data of above issues at JSSC will
be transferred to JASDEC after the close of business on
April 28, 2006.

    For more information, please contact: 

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

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

     Mr. James Hawrylak
     Taylor Rafferty (IR Contact) 
     Japan 
     Tel:   [phone]
     Email: [e-mail]

     United States 
     Mr. David Leeney
     Tel:   [phone]
     Email: [e-mail] 

SOURCE  Xinhua Finance Limited