Chinese Initial Public Offering Indicator: ICBC and Other Bank Stocks Push the IPO Indictor to Historic High

Chinese Initial Public Offering Indicator: ICBC and Other Bank Stocks Push the IPO Indictor to Historic High

September 27, 2007

    SHANGHAI, Sept. 27 /Xinhua-PRNewsire/ -- 

    August 2007: 312.1
    July 2007: 287.8
    Month-to-month change: 8.4%
    August 2006: 177.6
    Year-to-year change: 75.6%

    (Logo: http://www.xprn.com/xprn/sa/200611140926-min.gif
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    Click here to download the chart:      
http://www.xinhuafinance.com/en/charts/ipo_rpi/0709/ipo_chart0709.jpg

    Highlights

    The IPO indicator reached a new high of 312.1 at the
end of August, an 8.4 percent increase from July.
Twenty-one stocks entered the August indicator, and three
dropped out, bringing the total to 132.

    Analysis

    Of the 111 equities included in both the July and
August indicators, sixty increased in price and fifty-one
fell. Bank stocks accounted for 60.2 percent of the
increase in the indicator's market capitalization, while
three energy stocks -- Pingdingshan Tianan Coal (A share,
601666), Shanxi Lu'an Environmental (A share, 601699) and
China Coal Energy (H share, 1898)-accounted for another 9.4
percent of the increase. The Industrial and Commercial Bank
of China's (ICBC) market capitalization (A share, 601398; H
share, 1398) increased by 8.8 percent in August, making ICBC
the largest contributor to the rise in indicator value for
the month. 

    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
dropped from the indicator after twelve months.

    Xinhua Finance/Milken Institute China Indicators 

    The Xinhua Finance/Milken Institute China Indicators
provide investors, analysts, and financial professionals
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 (the China
M&A Indicator, the China Privatization Indicator, and
the China Corporate Governance Indicator) will be launched
later this year. 

    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 Xinhua
Finance and Bloomberg; 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 ("XFL") 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's
proprietary content platform, comprising Indices, Ratings,
Financial News, and Investor Relations, serves financial
institutions, corporations and re-distributors worldwide.
Through its subsidiary Xinhua Finance Media Limited
(Nasdaq: XFML), XFL leverages its content across multiple
distribution channels in China including television, radio,
newspaper, magazine and outdoor media. Founded in November
1999, XFL is headquartered in Shanghai, with offices and
news bureaus spanning 11 countries worldwide. For more
information, please visit http://www.xinhuafinance.com .

    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]
              [phone]
       Email: [e-mail]

       Mr. Scott Zhang
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       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]