Xinhua arm to buy US data provider

A subsidiary of state-run Xinhua will buy a New York-based financial-information services provider, extending its global business reach and paving the way for an initial public offering.

Hong Kong-based Xinhua Financial Network (XFN) - partly owned by Xinhua - said yesterday it would acquire 100 per cent of Market News International for an undisclosed amount.

The transaction - involving both cash and stock - is pending the approval of both parties and is expected to close early next month. It follows XFN's acquisition of AFX Asia and the formation of a global alliance this year.

'We want to be a provider of specialised Chinese financial information for global marketplaces,' an XFN spokeswoman said. 'These acquisitions will help us break the barriers to entry.'

Market News International employs about 70 staff in bureaux in the United States and Europe.

Industry watchers say XFN is expanding aggressively in preparation for a Hong Kong listing.