(Source: PRNewswire)NEW YORK and SHENZHEN, China, Oct. 6 /Xinhua-PRNewswire-FirstCall/ -- China Finance, Inc. (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 ("SMEs"), today announced that the Company intends to expand its business to include strategic direct investments in and acquisitions of the equity of SMEs through its wholly-owned subsidiary, Value Global International Limited, a British Virgin Islands company ("Value Global"). The Company also announced today that, consistent with this new line of business, Value Global has signed a non-binding letter of intent to acquire 80% of the current issued and outstanding shares of Wenxi Baiyu Magnesium Co., Ltd. ("WBM") from Shanxi Baiyu Industrial Group ("Shanxi") for approximately $11,420,000 (the "LOI"). The proposed transaction is subject to the satisfactory completion by the Company of due diligence and business negotiations, the finalization of terms for a definitive agreement, and the receipt of final approval from the Company's board of directors and any approvals required under WBM's and Shanxi's governing documents and applicable law.

Currently, the Company's business focuses on providing surety guarantees, loan guarantees and short-term loans to SMEs when they seek access to capital or seek to become publicly-traded companies in the United States. The Company believes that the introduction of direct investment and acquisition opportunities is a natural evolution and expansion of its current business. To evaluate direct investment acquisition opportunities, the Company will use investment analysis and due diligence reviews similar to those used by the Company for its current lines of business. In general, the Company expects its direct investments and acquisitions to be made in SMEs in a wide range of industries with annual revenues of at least $30 million.

Ms. Ann Yu, CEO of the Company, stated, "We are excited about the implementation of this new line of business for the China Finance. We anticipate that the direct investments will allow China Finance to continue to grow strategically and prove to be lucrative for the company."

To kick off its new business line, the Company recently signed the LOI with Shanxi to purchase 80% of its shares of WBM. WBM was founded in April 2000 by Shanxi, a large paper making enterprise, and is located in Yuncheng, Shanxi Province, which is a major magnesium production base in China. WBM currently owns one of the largest monomer magnesium spindle production lines in China producing magnesium spindle, metal calcium and magnesium alloy. Recently, WBM acquired dolomite mining rights to two independent mines.