Xinhua Finance/MNI China Business Survey: Indexes Slump

Xinhua Finance/MNI China Business Survey: Indexes Slump

May 29, 2007

    SHANGHAI, May 29 /Xinhua-PRNewswire/ -- Xinhua Finance
(TSE Mothers: 9399) and Market News International (MNI), a
part of the news service line of Xinhua Finance, today
announced the May Xinhua Finance/MNI China Business
Sentiment Survey. The results of the survey suggest that
rising costs and government measures to slow the economy
are cutting into corporate sentiment and current business
conditions.

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

    While most of the survey indexes remained well in
positive territory, key indexes showed a slowdown from the
successive record results experienced in every survey this
year. 

    Key indexes such as current and future business
conditions and current and future financial positions
retreated to levels not seen since last year. The index for
input prices hit a new record high, while the index for
order backlogs was at a new record low.

    The monthly survey was conducted May 7-23 and comes
amid rising interest rates and other measures imposed by
the government to slow what some say is an overheating
economy.

    Since its inception in January, 2005, the survey has
accurately tracked and predicted overall Chinese economic
conditions, providing important intelligence ahead of
government data. The survey has been especially important
in indicating turnarounds in the economy, such as last
summer's slowdown or the pickup in activity seen since last
fall. 

    To receive a full version of the survey, or to find out
more about Xinhua Finance and Market News International,
please contact us via [e-mail] .

    Notes to Editors:

    About Xinhua Finance Limited 

    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.   

    For more information, please visit
http://www.xinhuafinance.com . 

    About Market News International

    Market News International (MNI), a Xinhua Finance
company ( http://www.xinhuafinance.com ), is a financial
news and information company dedicated to the global fixed
income and foreign exchange markets.  MNI joined the Xinhua
Finance family in March 2004, bringing its niche expertise
and extensive distribution network.  Headquartered in New
York, MNI has news bureaus and offices throughout the US,
Europe and Asia.

    With more than twenty years of history, MNI is a fully
accredited news agency providing focused, timely, relevant
and critical intelligence for market professionals.  Its
press credentials are accepted by all operations of the
U.S. Government, including the White House, the Federal
Reserve, both houses of Congress, all major agencies and
cabinet departments, all similar government operations in
the G-7 countries, as well as by supranational
organizations such as the World Bank and the International
Monetary Fund.


    For more information, please contact: 

    Xinhua Finance
    Hong Kong/Shanghai
     Ms. Joy Tsang
     Tel:   [phone],
[phone]
     Email: [e-mail]
    
     Mr. Scott Zhang
     Tel:   [phone]
     Email: [e-mail]
    
    Japan 
    Mr. Sun Jiong
    Tel:   [phone]
    Email: [e-mail]
    
    Taylor Rafferty (Media/IR Contact)
    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]