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Xinhua Finance/Milken Institute Chinese IPO Indicator Update: May IPO Indicator remains at high of 251.1

Xinhua Finance; Milken Institute
2007-06-27 11:05 3042

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

(Logo: http://www.prnasia.com/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 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 www.milkeninstitute.org.

Contact information:

Xinhua Finance

China

Ms. Joy Tsang

Tel: +86-21-6113-5999 or +852-948-64363

Email: joy.tsang@xinhuafinance.com

Mr. Scott Zhang

Tel: +86-21-6113-5996

Email: scott.zhang@xinhuafinance.com

Japan

Mr. Jiong Sun

Tel: +813-3221-9500

Email: jsun@xinhuafinance.com

Taylor Rafferty (Media contact for Xinhua Finance)

Japan

Mr. James Hawrylak

Tel: +813-5733-2621

Email: James.hawrylak@taylor-rafferty.com

United States

Mr. John Dudzinsky

Tel: +1-212-889-4350

Email: John.Dudzinsky@taylor-rafferty.com

Europe

Faisal Kanth

Tel: +44-20-7614-2900

Email: Faisal.Kanth@taylor-rafferty.co.uk

Milken Institute

Ms. Jennifer Manfre,

Associate Director of Communications

Tel: +1-310-570-4623

Email: jmanfre@milkeninstitute.org

Source: Xinhua Finance; Milken Institute
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