Xinhua Finance/Milken Institute Chinese IPO Indicator Update: May IPO Indicator Remains at High of 251.1

Xinhua Finance/Milken Institute Chinese IPO Indicator Update: May IPO Indicator Remains at High of 251.1

June 27, 2007

    SHANGHAI, China, June 27 /Xinhua-PRNewswire/ --

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

    Indicator Value Change
     May 2007: 251.1
     April 2007: 251.1
     Month-to-month change: 0.0%
     May 2006: 182.5
     Year-to-year change: 37.5%

    Click
http://www.xinhuafinance.com/en/charts/ipo_rpi/0706/ipo_chart0706.jpg
to download the chart. 

    Highlights

    The IPO indicator stayed at its high of 251.1 at the
end of May, unchanged from the previous month. Four stocks
were added to the indicator, three of which were listed on
the Shenzhen Stock Exchange and the fourth on the Hong Kong
Stock Exchange. 

    Analysis

    Of the 107 equities included in both the April and May
indicators, fifty-six dropped in price, fifty increased,
and one remained unchanged. Energy stocks continued to be
the main contributors to the indicator's value. China Coal
(H share, 1898), Datong Coal (A share, 601001), and
Pingdingshan Tianan Coal (A share, 601666) represented 43
percent of the increase in the indicator's market
capitalization. Industrial and Commercial Bank of China
(ICBC; A share, 601398; H share, 1398), China CITIC Bank (A
share, 601998; H share, 0998), Industrial Bank(A share,
601166), and Bank of China (A share, 601988; H share, 3988)
accounted for the largest drops in market capitalization in
May, but these were not enough to lower the value of the
indicator.

    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 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. 

    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 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] 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]