CHINA FINANCE, INC. 
By Fellow Shareholders:
2009 will be an important year for China Finance and its shareholders. We
expect to see the completion of several significant initiatives in addition to
our traditional business of providing financial services to some of the
fastest growing private companies in
China Finance is in the process of looking at several investment acquisition opportunities where we will seek to use our expertise to make direct investments in companies developing quality businesses with significant potential. We view this as a logical extension of our business plan and have embarked on this expansion to further maximize our revenues, and of course, shareholder value.
To this end, management has attended several industry meetings over the past few months both to look for opportunities as well as market the services of China Finance. Through these meetings and other outreach efforts, we believe that we have established strong and promising contacts with the potential to lead to future business. These include:
-- Response to US's Subprime Crisis: I delivered a speech on the funding
challenges confronting Chinese companies to a large group of Asian
entrepreneurs.
-- The Matching and Promoting Conference of China (western) Hi-tech
Industry and VC Capital 2009: Management interacted with a group of
1,000 people including investors, experts and over 100 media
representatives on topics such as utilizing international capital
markets, particularly in Western China.
-- Peak HR Seminar: I delivered a speech to national and international
Human Resources professionals on improving employee skills, retention
of talent and the latest global techniques in HR management.
We recently developed our most important initiatives for 2009, which will focus on the following five planks of our business model:
-- Continue to focus on providing financial support and services for SMEs
-- Identify and provide financing to target companies
-- Utilize CHFI's expertise to educate and help guide growing companies
-- Fund strategic investments that have the potential to become public in
the US
-- Make expansion funds available to established business
China Finance is reviewing several potential companies that appear to meet
our criteria for investment, which includes strong growth and revenue
potential. We intend to focus on companies currently delivering
I thank you for your support and interest and look forward to bringing you regular details of our initiatives in 2009 and beyond. For the latest information, kindly bookmark our website: http://www.chinafinanceincorporation.com/
Sincerely,
Ann Yu
Chief Executive Officer
China Finance, Inc.
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 SME's when they seek access to capital or to be acquired by a
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 and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by any forward-looking statement. These risks and uncertainties include, but are not limited to, the risk that the value of our portfolio securities will decline resulting in a decline in the value of the Company's stock, we might not achieve our anticipated development milestones, the market for our services will not grow as expected and we might not achieve our expectations. If these or other significant risks and uncertainties occur, or if our underlying assumptions prove inaccurate, our actual results could differ materially. While the Company is an operating company, the Company is registered as a "closed-end" investment company under the Investment Company Act of 1940, as amended, and is subject to the types of investment risks that effect investment companies. You are urged to consider the operating and investment objectives and strategies, expenses and history of the Company, along with all risks and uncertainties noted above, 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 http://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. Past performance is no guarantee of future results, and like all investments, you may lose money on an investment in the Company's stock.
For more information, please contact:
China Finance, Inc.
Wei Wei
Tel: +1-212-823-0534
Email: wei@chinafinanceinc.com
SOURCE China Finance, Inc.
