Unassociated Document


    Exhibit
4.8

    


    


    September
19, 2007

    


    


    Re:  Investor
Warrants Proposal

    


    


    Dear
November 3, 2006 PIPE Investors:

    


    


    In
accordance with the provisions set in the Share Purchase Agreement and
Registration Rights Agreement associated with the November 3, 2006 PIPE
transactions, we  have incurred the following penalties:

    


    (1)   Maximum
penalty related to the delay in causing the registration statement
covering Investor
shares to be filed and declared effective and;

    


    (2)   Partial
penalty related to delay in settling related party transaction
balance.

    


    As a
result, according to our careful calculation, which was verified by our
independent auditors, we now have $2,010,000 in cash penalties payable to PIPE
transaction Investors.

    


    In order
to preserve cash in Duoyuan for business operation and growth, and to preserve
reported fiscal year 2007 US GAAP after tax net earnings, we now propose to
issue 793,421 stock purchase warrants instead of cash to PIPE transaction
Investors on a pro rata basis.  The basic terms of the warrants that
we are proposing to issue include:

    


    
      	
              (1) 

            	
              each
      warrant is exercisable into one Duoyuan common stock (adjusted for post
      reverse-split) at
      an strike price of $5.76 per share, which is 150% of the $3.84 (adjust for
      post reserve-split) PIPE
      price;

            


    

    


    (2)  each
warrant carries a call provision at 200% of the strike price

    


    (3)  the
warrants have a terms of 5 years.

    


    To assist
you in understanding the math associated with our proposed alternative, we offer
the following hypothetical scenario for your consideration.  As an
example:

    


    (1)  If
the market consensus on Duoyuan fiscal year 2009 reported US GAAP after tax
net earnings
is $23.9 million ($0.95 per share), in line to our  2008 Make-good
and;

    


    
      	
              (2) 

            	
               After
      our stock starts trading in late 2007, if the Duoyuan common stock were to
      trade at 10x market
      consensus on fiscal year 2008 reported US GAAP after tax net earnings,
      namely $9.56
      (10 X $0.95) per share (adjusted for post
  reverse-split).

            


    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (3)  The
warrants would have an intrinsic value of at least $3,015,000, which is 150% of
cash penalty
amount.  See attached table for details.

    


    We feel
that our warrants proposal offers a significant value proposition to
you.  We sincerely hope you will consider our warrant proposal as an
acceptable alternative to receiving the penalty payment in cash.

    


    Please
call Gene Bennett at 8610-6021-2222 ext 215, Duoyuan’s CFO, should you wish to
discuss these two options.  Alternatively, please check the
appropriate box on the attached form denoting your decision and fax back to Gene
Bennett at 8610-6021-2164.

    


    Thank
you!

    
      
        
          	 	 	 
	 	 	ASIAN
      FINANCIAL, INC.	 
	 	 	 	 
	
                   

                	
                   

                	/s/ Wenhua
      Guo	 
	 	 	Name:  Wenhua
      Guo	 
	 	 	Title:  Chief
      Executive Officer	 
	 	 	 	 


        

      



    


    Attached:
Duoyuan Penalty Warrants.exl