Xinhua Far East Assigns AA Issuer Credit Rating to Shanghai Port Container Co., Ltd.

Xinhua Far East Assigns AA Issuer Credit Rating to Shanghai Port Container Co., Ltd.

April 12, 2006

    HONG KONG, April 12 /Xinhua-PRNewswire/ -- Xinhua Far
East China Ratings today assigned Shanghai Port Container
Co., Ltd. ("the Company" or "SPC", SH A
600018) with an AA domestic currency issuer credit rating.
The Company's rating outlook is stable.  The rating
reflects SPC's advantageous location in Shanghai, a hub of
China's buoyant international trade, and in the prosperous
Yangtze River Delta -- the main engine of China's economy,
which represented more than 20% of China's GDP in 2005. 
SPC's position has been bolstered by rapid development at
Shanghai port, which is currently the third largest port in
the world in terms of container throughput; it is also the
largest in mainland China in terms of both container and
cargo throughput.  The government's decision to build an
international shipping center in Shanghai and the
construction of Yangshan Port will also benefit the Company
in the long run. 

    Xinhua Far East believes that the acquisitions of
stakes in Waigaoqiao Phase V and Yangshan Phase I will
enable the Company to maintain vibrant growth in its core
business, giving it an expansion of 50% in its container
handling capacity.  The Company's strategy of taking an
equity position in branch ports along the Yangtze River has
strengthened the hub position of the Shanghai port by
attracting stable container sources.

    In addition, the Company has efficient container
handling operations, ample cash reserves, sound cash flow
and profit generating capacity, flexible fund raising
channels, and relative conservative financial leverage.

    There are concerns, however, related to the cyclical
nature of the container shipping industry, a possible
slowdown of China's economy, the huge capital expenditure
required for the construction of the new port facilities,
and the inadequate berth water depth of Shanghai port.

    Additionally, Xinhua Far East notes that the Company
may not receive the same level of support from its parent
company, Shanghai International Port (Group) Co., Ltd., as
it enjoyed previously as a result of stringent corporate
governance requirements implemented for SIPG's planned IPO
in Hong Kong.

    Shanghai Port Container Co., Ltd. ("SPC") is
a leading company specializing in container terminals
handling and value-added services at Shanghai port.  The
Company's activities mainly include port handling, road
transportation, agency and other port-related business.  In
2005, the Company reported turnover and EBIT of RMB4,776
million and RMB1,925 million respectively.  Turnover
generated from its port handling business reached RMB2,824
million, accounting for 59% of total turnover in 2005.  The
Company mainly operates in the Shanghai area, with turnover
from this region accounting for 99.18% of total turnover in
2005.

    SPC's parent company is Shanghai International Port
(Group) Co., Ltd. ("SIPG"), which held a 70.18%
stake in the Company at the end of 2005. SIPG is the
biggest port company with the highest container loading and
transportation capacity in mainland China.  SIPG's
predecessor was the Shanghai Port Authority, and the
state-owned Shanghai Assets Supervision and Administration
Commission controlled 50% of the stake of SIPG at the end
of 2005. 

    Shanghai Port Container Co., Ltd. is also a large cap
company in the Xinhua/FTSE China A50 Index.  As of April
11, 2006, its total market cap was RMB20 billion with
investable market cap of RMB6 billion.

    For the rating report summary, please visit
http://www.xinhuafinance.com/creditrating .

    Note to Editors:

    About FTSE/Xinhua China A50 Index 

    The FTSE/Xinhua China A50 Index is a real-time tradable
index comprising the largest 50 A Share companies by full
market capitalization.  Designed to meet the needs of
QFIIs, it can be used as a basis for both on-exchange and
OTC derivative products, mutual funds and ETFs.  For daily
data and further information, see http://www.xinhuaftse.com
.

    About Xinhua Far East China Ratings

    Xinhua Far East China Ratings (Xinhua Far East) is a
pioneering venture in China that aims to rank credit risks
among corporations in China.  It is a strategic alliance
between Xinhua Finance (TSE Mothers: 9399), and Shanghai
Far East Credit Rating Co., Ltd.  Shanghai Far East became
a Xinhua Finance partner company in 2003 and the first
China member of The Association of Credit Rating Agencies
in Asia in December 2003. 

    Capitalizing on the synergy between Xinhua Finance and
Shanghai Far East, Xinhua Far East's rating methodology and
process blend unique local market knowledge with
international rating standards.  Xinhua Far East is
committed to provide investors with independent, objective,
timely and forward-looking credit opinions on Chinese
companies.  It aims to help investors differentiate the
credit risks among the corporations in China, thereby,
cultivating their awareness and promoting information
disclosures and transparency in China market.  For more
information, see http://www.xfn.com/creditrating .

    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.  For more information, please visit
http://www.xinhuafinance.com . 
 
    About Shanghai Far East Credit Rating Co., Ltd

    Shanghai Far East Credit Rating Co., Ltd. is the first
and leading professional credit rating company with
comprehensive business coverage in China.  It is an
independent agency established by the Shanghai Academy of
Social Sciences with the mission to develop internationally
accepted standards for capital market in China.  The company
is a pioneer in conducting bond-rating business in China. 
For years, it has been authorized by the Shanghai branch of
the PBOC to undertake loan certificate credit rating.

    Since establishment, it has rated over 1,000 corporate
long-term bonds and commercial papers, based on the
principles of objectivity, fairness and independence.  The
company has also maintained over 50% market share in the
loan certificate-rating sector in Shanghai for three
consecutive years. With its strong local presence and
knowledge, it provides investors with unique and the most
insightful credit opinion.  For more information, see
http://www.fareast-cr.com .

    For more information, please contact:    

    Hong Kong
     Joy Tsang, 
     Corporate & Investor Communications Director, 
     Xinhua Finance
     Tel:   [phone] or
[phone]   
     Email: [e-mail]

    US
     David Leeney, 
     Taylor Rafferty (IR/PR Contact in US)
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Xinhua Far East China Ratings