China Xin Network enters distribution and consulting agreement with

World IT Report, Apr 9, 2003

China Xin Network (Canada) Inc., provider of financial, economic and business information on the People's Republic of China, has signed a distribution agreement with a leading Chinese brokerage firm, Hong Yuan Securities Co. Ltd. of Beijing.

The broker research produced by Hong Yuan will be a significant addition to the content already produced and distributed by CXN and will play an important part in achieving the forecasted revenue of $3 million for the fiscal year ending December 2002.

CXN also signed a consulting agreement with Hong Yuan to represent the firm in establishing a partnership with a North American financial corporation to launch a new Sino-foreign fund management firm. The new Mutual Fund joint venture will manage, market and distribute mutual funds for the Chinese domestic market.

The Chinese Domestic market has been growing very rapidly. In early September, the China Securities Regulatory Commission (CSRC) granted China's first open-ended mutual fund licence to the Bank of Communication. Despite the sluggish stock markets, Chinese investors flocked to 139 outlets of the Bank of Communications in 13 cities to buy into the 3 Billion Yuan ($363 million) worth of open-ended Hua'an Innovation Fund.

HongYuan Securities Co. Ltd. is the first publicly listed securities firm on the Shenzhen Stock Exchange. Since its listing in 1994, Hong Yuan has grown its assets under management to over 5 billion Yuan ($604 million). Hong Yuan has 21 brokerage offices in 10 cities across China, with over 500 employees. -(World IT Report)