Xinhua Far East Assigns BBB (pi) Rating to Shanghai Bashi Industrial (Group) Co Ltd

HONG KONG, Aug. 14, 2003 -- Xinhua Far East China Credit Ratings (Xinhua Far East), the pioneering undertaking to rank credit risk among Chinese corporations using international standards, today assigns the BBB (pi) long-term credit rating to Shanghai Bashi Industrial (Group) Co Ltd ("Bashi" or "the Company", SH A 600741). The rating outlook is stable.

The BBB (pi) long-term credit rating is mainly based on Bashi's clear competitive advantage in scale in Shanghai's public transport industry, Shanghai's rapid economic development, and the Shanghai government's policies to promote urban public transport, which creates a conducive operating environment for the urban public transport industry and growth opportunities for public transport operators. Xinhua Far East analyses Bashi's main risk factors as follows:

  * The Company currently has a relatively heavy debt burden and relatively
    limited financial flexibility, which will hamper its future development.

  * With the improvement of traffic conditions in Shanghai, the growth of
    other transport means such as subway and light rail will divert
    passengers from buses and taxis, putting pressure on the Company's
    future operation.

  * Volatility of oil prices will increase instability of the Company's
    profitability.

In July 2003, Bashi issued a profit warning that owing to the SARS epidemic, its earnings for the first half of 2003 will shrink by more than 50%, compared with the earnings as of the first six months of 2002. In Xinhua Far East's opinion, the epidemic is a non-recurrent event and has only a transient impact on Bashi that would not structurally weaken the Company's financial that makes its risk profiles incompatible with the BBB rating category.

Bashi is mainly involved in the public transport industry, including buses, taxis and tourist coaches, sale of automobile parts and vehicle repair, in Shanghai.

The Company a mid cap company ranking the 12th in the Xinhua/FTSE China A 400 Index. As of August 12, 2003, the total market cap of the constituent accounted for RMB 3.75 billion yuan (USD 463 million) with the investible market cap of RMB 1.88 billion yuan (USD 232 million).

About Xinhua/FTSE China A 400 Index

Xinhua/FTSE China A 400 Index is the mid cap index in the Xinhua/FTSE China A Share Index Series and includes the 400 companies in China ranked after the top 200 by market cap. It is calculated in real-time every minute. For daily data and further information, see www.xinhuaftse.com.

About Xinhua Far East China Credit Ratings

Xinhua Far East China Credit Ratings (Xinhua Far East) is a pioneering venture in China that aims to rank credit risks among corporations in China. It is engineered by the strategic alliance between Xinhua Financial Network and Shanghai Far East Credit Rating Co., Ltd.

Capitalizing on the synergy between XFN and Shanghai Far East, Xinhua Far East's rating methodology and process blend unique local market knowledge with international rating standards. Xinhua Far East is committed to provide investors with independent, objective, timely and forward looking credit opinions on Chinese companies. It aims at helping investors differentiate the credit risks among the corporations in China, thereby, cultivating their awareness and promoting information disclosures and transparency in China market. For more information, see www.xfn.com/creditrating.

About Xinhua Financial Network

Xinhua Financial Network (XFN) is an independent financial service and media company based in Hong Kong providing financial information and unique access to Chinese and Asian markets. XFN provides real-time coverage of the Chinese and Asian equity markets and the corporate and economic news that moves them, delivering an integrated platform of indices, financial news feeds, credit ratings and investor relations services to global financial institutions and re-distributors via leased line, Internet and satellite technology. Early this year, the company acquired AFX-Asia Pte Ltd. and became immediately one of the leading financial news services in Asia, providing information from twelve bureaus throughout Asia and Australasia, for the professional investment community and the investing public.

Founded in 2000, XFN is backed by a select group of partner investors and is managed by a team of international business professionals recognized for their industry knowledge and proven leadership. The company is owned by a group of international shareholders including PR Newswire, informa, Xinhua News Agency, Nippon Venture Capital, REFCO and Funai Venture Capital. XFN is a Hong Kong corporation, with offices in Beijing, Shanghai, Shenzhen, Korea, Taiwan, Japan, Singapore and North America. For more information, see www.xfn.com.

About Shanghai Far East Credit Rating Co., Ltd

Shanghai Far East Credit Rating Co., Ltd. is the first and leading professional credit rating company with comprehensive business coverage in China. It is an independent agency established by the Shanghai Academy of Social Sciences with the mission to develop internationally accepted standards of capital market in China. The company is a pioneer to conduct bond-rating business in China. For years, it has been recognized by the Shanghai branch of the PBOC to do loan certificate credit rating.

Since establishment, it had rated over 1,000 corporate long-term bonds and commercial papers, based on the principles of objectivity, fairness and independence. The company has also maintained over 50% market share in the loan certificate-rating sector in Shanghai for three consecutive years. With its strong local presence and knowledge, it provides investors the most insightful and unique credit opinion. For more information, see www.fareast-cr.com.