NEW YORK and SHENZHEN, China, Sept. 18 /Xinhua-PRNewswire/ -- China
Finance, Inc. (OTC Bulletin Board: CHFI) (the ''Company''), a provider of
financial support and services for China's large and rapidly expanding class
of small and medium enterprises, today announced that the Company's wholly-
owned operating subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited
Liability Corporation (''SHY'') has agreed to guarantee a $2.15 million (RMB15
million) loan from China Construction Bank, Shenzhen Branch (''CCB'') to a
wholly-owned subsidiary of China Digital Communication Group (OTC Bulletin
Board: CHID), Shenzhen E'Jenie Science and Technology Company Limited
(''E'Jenie'').
On August 27, 2008, SHY entered into a loan guarantee agreement with CCB
and E'Jenie with respect to the E'Jenie loan, the proceeds of which will be
used by E'Jenie to expand its business through acquisitions. The loan has a
term of one year at an interest rate of 8.59%, with principal and interest
payments to be made on a monthly basis. E'Jenie has paid SHY a fee of
$110,000 in exchange for the loan guarantee. If E'Jenie pays the loan in
accordance with its terms, SHY will have no payment obligation under the loan
guarantee agreement. However, SHY and China Finance are subject to the risk
that if E'Jenie defaults on the loan SHY will be responsible for any unpaid
portion of the Loan.
Ms. Ann Yu, the Company's CEO, stated: ''China Finance is very pleased
that we have been able to enter into this loan guarantee transaction. We are
pleased that the company has been able to establish strong relationships with
our clients and lending banks based on the company's strong operations and
credibility.''
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
its wholly-owned indirect subsidiary, Shenzhen Hua Yin Guaranty and Investment
Limited Liability Corporation (''SHY''), which is located in the financial
district of Shenzhen, China.
Safe Harbor for Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.
