NewswireTODAY - /newswire/ - New York, NY, United States, 2007/06/26 - Recent Legal Actions filed against Xinhua Finance Media [NasdaqGM: XFML] lead CFC’s China Business Watch to suspend stock’s SAQ rating rating.

China Finance Centre, the New York based multimedia and trade exposition center expanding business ties between China and the United States, has announced that it has suspended further ratings of the performance of Xinhua Finance Media (NasdaqGM: XFML). The SAQ Ratings are set by editors of China Business Watch, the CFC publication that rates the performance of China based companies.

Xinhua, a diversified media company in China, operates of five divisions: Media Production, Broadcasting, Print, Advertising, and Research. Over the last two weeks, nine law firms have announced that they have filed class action lawsuits against Xinhua Finance. The lawsuits allege that Xinhua and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, including the failure to disclose and misrepresention of material adverse facts. On May 21, 2007, Barron's published an article on Xinhua which reported that the Registration Statement for the IPO failed to disclose that Xinhua's Chief Financial Officer, Shelly Singhal, was simultaneously the company's CFO and an investment banker and stockbroker, who ran a securities firm that had been under regulatory scrutiny in the past year.

These events have led to the issuance of the following statement by CFC:
“In view of the serious nature of the legal filings against Xinhua Finance Media (NasdaqGM: XFML), China Business Watch SAQ Ratings Service has suspended the company’s SAQ Rating status until further definitive information is made available and assessed.”

The Statistical Analysis Quotient Rating (SAQ) Service is an exclusive feature of China Finance Centre that monitors the performance of over 300 stocks of companies with operations in China. The SAQ Report tracks and rates the stocks against a matrix of comparative performance factors, including fundamentals, technical analysis, liquidity, safety, regulatory compliance and timely filings, shareholder relations, and U.S. Trading Market Qualifications. The SAQ rates company performance on a 1-10 scale. SAQ Ratings are published weekly in China Business Watch and updated daily in CBW Daily Ratings Alert service.

Agency / Source: China Finance Centre (CFC)

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