Xinhua Finance/MNI China Business Survey: Climate Worse

Xinhua Finance/MNI China Business Survey: Climate Worse

June 29, 2007

    SHANGHAI, June 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 June Xinhua Finance/MNI China Business
Sentiment Survey. The results of the survey show a second
consecutive month of deteriorating conditions for Chinese
businesses, as companies face increasingly difficult
conditions and scale back production growth as new orders
slow and demand pressures mount for inputs and skilled
workers.

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

    Key indexes in the survey fell for the second
consecutive month, as companies reported being hit by the
rising yuan, government efforts to slow credit growth and
difficulties in obtaining skilled workers and raw materials
at a good price. 

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

    Prior to the May survey, results suggested an
increasingly sharp upswing in sentiment amid a broad
reacceleration in economic activity in China following a
moderate slowdown in the second half of last year. 

    The monthly survey was conducted June 11-26 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 11 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]
    
    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]