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.
