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Xinhua Finance/MNI China Business Survey: 1st Ever Contraction

2008-10-31 10:45 800

SHANGHAI, Oct. 31 /Xinhua-PRNewswire/ -- Chinese business sentiment fell sharply in October, as a worsening economy at home and abroad outweighed any positive news from declining inflationary effects, the results of the latest Xinhua Finance/MNI China Business Sentiment Survey indicate.

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The headline sentiment index for current business conditions in October fell to 49.06, the first time the index has been in contraction. Other indexes, including the key new orders index, also showed contractions for the first time in the almost four years of the survey's history.

An index figure above 50 indicates that the business activity is growing or improving, a figure below 50 that it is shrinking. The further the figure above or below 50, the faster the growth or contraction.

The current business conditions index was at 58.24 in September and was hitting levels around 80 as recently as early last year.

Although other indexes had showed growth slowing earlier this year, the index for new orders had been holding up fairly well until September, when it fell to 52.80 from 62.32 in August. But the index dropped to 45.16 in October, the first time it has showed a contraction.

The indexes indicating inflationary effects also declined sharply, one of the few positive indicators in an overall negative result.

The survey was released today by Xinhua Finance (TSE Mothers: 9399) and Market News International (MNI), a part of the news service line of Xinhua Finance.

The monthly survey was conducted October 13-24.

Since its inception in January, 2005, the survey has accurately tracked and predicted overall Chinese economic conditions, providing important intelligence ahead of government data.

To receive a full version of the survey, or to find out more about Xinhua Finance and Market News International, please contact us via mni@xinhuafinance.com .

Notes to Editors:

About Xinhua Finance Limited

Xinhua Finance Limited ("XFL") is China's premier financial information 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's proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited (NASDAQ: XFML), XFL leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL 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.

Source: Xinhua Finance
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