China Vesting, a leading investment newsletter dedicated to Chinese public companies listed in the United States, today announced that is has reconstituted its index of U.S.-listed Chinese Public Companies. Florida-based China Direct Industries (NASDAQ: CDII), a leader in the production and distribution of magnesium, and distributor of basic materials in the People’s Republic of China, was added to the China Dragon Undervalued Index.

China Direct operates two main segments, Magnesium and Basic Materials. The Magnesium segment produces and distributes various magnesium products, such as magnesium ingots, magnesium powders, magnesium alloys, various grades of magnesium slabs, and magnesium scraps. The Basic Materials segment involves in the sale and distribution of industrial grade synthetic chemicals, steel and non-ferrous metals. Further, China Direct Industries, Inc. offers consulting services to United States and Chinese companies.

China Direct Industries has given public guidance estimates for fiscal 2011 with revenue of $180 million and net income of $12 million. China Vesting added CDII to its Dragon Undervalued Index based on the company being one of the only Chinese Companies based in America with senior management that are American Citizens, who live and reside in the U.S. and thus must obey American laws and standards.

Members of Dragon Undervalued Index represent deeply undervalued Chinese companies trading on U.S. exchanges. There are many parameters China Vesting uses to decide what companies are eligible to be classified as a Dragon. The most important being: A member company must possess a market value that is less than comparables. The most common metric China Vesting will use is price to earnings (P/E) and enterprise value to earnings (EV/E). The market value must be significantly less to the point where the market value of the public company is less than or equal to what the company is worth as a private company. To read the full report regarding China Direct Industries inclusion into the China Dragon Undervalued Index, please navigate to: http://www.chinavesting.com/top-china-stock-pick-articles/The-Best-Chinese-Company-In-America-2010-03-22.htm

China Vesting determines membership for its indexes primarily by objective, market-capitalization rankings and style attributes.

Total returns data for the China 100 Index and other China Vesting Indexes are available athttp://www.chinavesting.com

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