BEIJING and NEW YORK: PR Newswire (PRN) has invested $6 million in the Xinhua Financial Network to aid Chinese companies in attracting investments from Europe and North America.
Through the new venture, dubbed Xinhua PR Newswire, public and private organizations in China can send corporate financial announcements directly to Western media, analysts, and investors through specifically designed channels.
Following its formation, Xinhua PR Newswire entered a partnership with Shanghai Securities News, China's leading financial paper. By law of the China Securities Regulatory Commission, in order to meet disclosure, public companies on the Shenzhen or Shanghai exchanges are required to place quarterly financial ads in the News. Through this agreement, Xinhua PR Newswire has access to all of the 1,200-plus companies that are mandated to place ads in the publication, making the News a conduit for PRN to sell its distribution services to the Chinese market.
The World Trade Organization's acceptance of China in January, combined with this month's amendment to the Qualified Foreign Institutional Investor program that allows foreign companies to invest in China's shares, has drastically changed the country's investment market.
Operations will be handled locally by a staff of eight, based out of Xinhua PR Newswire's first office in Beijing. Plans for opening a Shanghai branch are already underway.
The Beijing-based sales and marketing team will launch an education program next month to help China's business community prepare news. "Many of these companies have no experience writing press releases," said John Williams, EVP of global markets for PRN. Templates to help with transparency, product announcements, and financial statements will be provided as part of the initiative.