SHANGHAI & TOKYO, April 16, 2007 – Xinhua Finance, China’s premier financial information and media service provider, today announced that its stock, listed on the Mothers Board of the Tokyo Stock Exchange (symbol: 9399), becomes eligible for standardized margin trading as of April 16, 2007. Of the 25 foreign corporations listed in Japan, Xinhua Finance is one of the first five whose stock will be able to be traded on margin under new regulations of Tokyo Stock Exchange (TSE).

Last November, the TSE announced the introduction of margin trading on stock issued by foreign companies “in order to strengthen market functions and provide diverse investment methods.”  Margin trading is believed to contribute to enhanced turnover, especially for foreign stocks solely listed on the TSE.  A recent  study reported findings that standardized margin trading, which accounts for 90% of margin trading, increases the  trading volume of stocks by 10-15% on average, to as high as 100% for certain individual stocks within two months of launch.

Xinhua Finance CEO Fredy Bush commented, “We are delighted to be among the first five foreign companies selected for margin trading. We also applaud TSE’s efforts to expand the investability in equity issued by foreign corporations. Xinhua Finance has been listed on the Japanese market for about three years and has seen the rapid expansion of our investor base as a result of our consistent efforts to generate value for our shareholders. This qualification is another reflection of our efforts.” 

 “This is exciting news to the company as a whole and to investors with interest in Xinhua Finance as it allows more flexibility when investing in Xinhua Finance stock and we expect that it will allow for increases in trading volume and liquidity for our investor base,” she added. 

Mr. Michio Matsui, President and CEO of Mastui Securities Ltd said, “The introduction of margin trading is expected to bring more convenience to individual investors and establish a stronger market through the increased trading volume.”  Matsui Securities is the first major online trading securities company in Japan and will introduce standardized margin trading on April 16.
The criteria for standardized margin trading are based on those of Japanese domestic issues, including number of listed shares, number of shareholders, average monthly trading volume, net income, and so forth.

Xinhua Finance listed on the Mothers Board of the Tokyo Stock Exchange in October 2004. It was the first Chinese corporation and the first foreign corporation with a primary listing on the Japanese market.

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More Information:
Xinhua Finance
Hong Kong/Shanghai
Ms. Joy Tsang, +852 3196 3983, +852 9486 4364, +86 21 6113 5999, joy.tsang@xinhuafinance.com

Japan
Mr. Sun Jiong, +81 3 3221 9500, jsun@xinhuafinance.com

Taylor Rafferty (Media/IR Contact)
Japan
Mr. James Hawrylak, +81 3 5444 2730, james.hawrylak@taylor-rafferty.com

United States
Ms. Ishviene Arora, +1 212 889 4350, ishviene.arora@taylor-rafferty.com

Europe
Mr. John Dudzinsky, +44 20 7614 2900, john.dudzinsky@taylor-rafferty.co.uk

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 ADR: XHFNY). Bridging China's financial markets and the world, Xinhua Finance serves financial institutions, corporations and re-distributors through four focused and complementary service lines: Indices, Ratings, Financial News and Investor Relations.  Founded in November 1999, the Company is headquartered in Shanghai with 20 news bureaus and offices in 19 locations across Asia, Australia, North America and Europe. 

For more information, please visit www.xinhuafinance.com.

This is a press release to the public and should not be relied on as information to make an investment decision by any investor. Investors should read the Company’s Securities Report filed to Tokyo Stock Exchange and consider the risk factors together with other information contained therein when making an investment decision. This press release contains some forward-looking statements that involve a number of risks and uncertainties. A number of factors could cause actual results, performance, achievements of the Company or industries in which it operates to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.