omniture

China Finance Announces New Agreements with China Construction Bank

2008-09-05 07:07 611

NEW YORK and SHENZHEN, China, Sept. 5 /Xinhua-PRNewswire/ -- China Finance, Inc. (OTC Bulletin Board: CHFI), a provider of financial support and services for China’s large and rapidly expanding class of small and medium enterprises ("SMEs"), today announced that China Finance’s wholly-owned operating subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation ("SHY") has entered into a Memo of Bank-Guaranty Cooperation and a Guaranty Cooperation Agreement with China Construction Bank, Shenzhen Branch ("CCB") on September 1, 2008. These agreements allow SHY to act as loan guarantor on loans from CCB, one of the largest financial institutions in China with over 13,000 branches, to SMEs on more favorable terms than many other companies. China Finance’s management believes that SHY’s new relationship with CCB will allow SHY to expand the geographic region where it provides its loan guarantee services.

The agreements will permit SHY to act as a loan guarantor for loans from CCB to SMEs while depositing only 20% of the loan amount with CCB as a security deposit. The agreements further allow security deposits to be made using domestic or foreign currency, which allows SHY to have more flexibility to react to changing exchange rates. SHY’s new relationship with CCB as a result of the agreements gives it the status as a Cooperative Guarantee Institution of CCB, which means that CCB will be more likely to make introductions for SHY to serve as a loan guarantor. SHY expects its new relationship with CCB to help expand the company’s loan guarantee services throughout the People’s Republic of China, beyond the Chu Chiang Delta Area (including Guangxi, Guangdong, Hainan and Fujian) where the company’s efforts are currently centered.

SHY has previously benefited from its close relationship with China Industrial and Commercial Bank and expects that its new relationship with CCB will allow for expansion of the loan guarantee segment of its business. Ms. Ann Yu, CEO of China Finance, Inc. said, "China Construction Bank will be another important cooperative partner for us, and we expect this new relationship to help us expand the reach of our loan guarantee business."

ABOUT CHINA FINANCE, INC.

China Finance, Inc. provides financial support and services - primarily in the form of surety guarantees, loan guarantees, or short-term loans - to privately owned SMEs when they seek access to capital or to be acquired by a United States reporting company. China Finance provides its services through SHY, which is located in the financial district of Shenzhen, China.

ABOUT CHINA CONSTRUCTION BANK

For more information about CCB visit their website at: http://www.ccb.com/portal/en/home/index.html .

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements relating to expected operating results and future performance, as well as future events and developments, are forward-looking statements and are not historical in nature. Generally, the words "looking forward", "believe", "expect", "intend", "estimate", "anticipate", "likely", "project", "may", "will" and similar expressions identify forward-looking statements. The company warns that any forward-looking statements in this release involve numerous risks and uncertainties related to the consummation of the transaction. If these risks and uncertainties occur, or if our underlying assumptions prove inaccurate, our actual results could differ materially. You are urged to consider all such risks and uncertainties, and to review the risk factors and financial information about the company available in the company’s registration statement on Form N-2, and the company’s Annual and Semi-Annual Reports and other regulatory filings accessible on the SEC’s website at www.sec.gov . In light of the uncertainty inherent in forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. Moreover, pursuant to the Private Securities Litigation Reform Act of 1995, such statements speak only as of the date they were made, and the company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Source: China Finance, Inc.
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