Xinhua Finance/Milken Institute Chinese IPO Indicator Update: Energy And Transport Stocks Push IPO Indicator Higher

Xinhua Finance/Milken Institute Chinese IPO Indicator Update: Energy And Transport Stocks Push IPO Indicator Higher

May 22, 2007

    SHANGHAI, China, May 22 /Xinhua-PRNewswire/ -- Xinhua
Finance Limited and the Milken Institute today release the
media update on the Chinese IPO Indicator.

    Indicator Value Change

    April 2007: 251.1
    March 2007: 244.5
    Month-to-month change: 2.7%
    April 2006: 184.2
    Year-to-year change: 36.3%

    (Logo: http://www.xprn.com.cn/xprn/sa/200611140926.gif
)

    Click
http://www.xinhuafinance.com/en/charts/ipo_rpi/0705/ipo_chart_en.jpg
to download the chart.

    Highlights

    The IPO indicator advanced in April, riding the wave of
the broader Chinese stock market, which has continued its
ascent despite warnings of a market bubble from various
government officials. The IPO indicator registered 251.1 at
the end of April, 6.6 points higher than the previous
month's score of 244.5. Fourteen equities were added to the
indicator. Among them was CITIC Bank (A share, 601998; H
share, 0998), which raised a combined US$5.4 billion in its
dual IPO on the A and H share markets, the largest IPO
worldwide this year.

    Analysis

    Of the ninety-three stocks included in the April
indicator, twenty-one declined in price, while seventy-two
increased. Energy, commodity, and transportation stocks
pushed the indicator value higher, accounting for eight of
the ten equities with the largest increase in market cap
this month. Daqin Railway (A share, 601006), China
Merchants Energy (A share, 601872), and Datong Coal (A
share, 601001) contributed to 62 percent of the increase in
score. The A share and H share prices of Industrial and
Commercial Bank of China (ICBC; A share, 601398; H share,
1398)) dropped 2.4 percent and 1.2 percent, respectively.
Of all constituents, ICBC had the greatest negative
contribution to market cap in April, due to its large
capital base. 

    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. Five of the eight indicators have been launched
since November 2006: the Renminbi Pressure Indicator, the
Chinese IPO Indicator, the Market Adjusted Debt (MAD)
Indicator, the Banking Strength Indicator (BSI), and the
Adjusted Trade and Finance (ATF) Indicator. The remaining
three indicators will be launched later this year. 

    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 premier financial
information and media service provider 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 five focused and
complementary service lines: Indices, Ratings, Financial
News, Investor Relations, and Distribution.  Founded in
November 1999, the Company is headquartered in Shanghai,
with offices and news bureaus spanning 14 countries
worldwide.

    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]