UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2011

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission file number: ____53111___

CHINA CAPITAL FINANCE CORP.

(FORMERLY CHINA QUEST ACQUISITION CORP.)

(Exact name of registrant as specified in its charter)

Delaware		to be applied
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Room 2119 Mingyong Building, No.60 Xian		116021
Road, Shekekou District, Dalian, China		(Zip Code)
(Address of principal executive offices)

Registrant’s telephone number, including area code: 13909840703

The registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company:

Large accelerated filer o	Accelerated filed o
Non-accelerated filer o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No o

The number of shares outstanding of the registrant’s common stock as of was 31,340,000 shares with $.0001 par value per share.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Balance Sheets	6

	Statements of Operations	7

	Statements of Cash Flows	8

	Notes to the Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12

Item 4.	Controls and Procedures	12

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	13

Item 1A	Risk Factors	13

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	13

Item 3.	Defaults Upon Senior Securities	13

Item 4.	Submission of Matters to a Vote of Security Holders	13

Item 5.	Other Information	13

Item 6.	Exhibits	13

Signatures		14

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the United States Securities and Exchange Commission ("Commission"). While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, contained in the registration statement filed with the Commission on Form 10-12G.

Stan J.H. Lee, CPA

2160 North Central Rd. Suite 209 ♦Fort Lee ♦ NJ 07024

P.O. Box 436402 ♦ San Diego ♦ CA ♦ 92143-6402

619-623-7799 Fax 619-564-3408 E-mail) stan2u@gmail.com

To Whom It May Concerns;

The firm of Stan J.H. Lee, Certified Public Accountant, consents to the inclusion of our report of May 19, 2011 , on the reviewed interim condensed financial statements of China Capital Finance Corp. ( Formerly China Quest Acquisition Corp.) as of March 31, 2011 and for the 3-months period then ended in any filings that are necessary now or in the near future with the U.S. Securities and Exchange Commission.

Very truly yours,

/s/ Stan J.H. Lee, CPA
Stan J.H. Lee, CPA

May 19, 2011
Fort Lee, NJ 07024

Registered with the Public Company Accounting Oversight Board

Member of New Jersey Society of CPAs

Stan J.H. Lee, CPA

2160 North Central Rd. Suite # 203 ♦ Fort Lee ♦ NJ 07024

P.O. Box 436402 ♦ San Diego ♦ CA 92143

619-623-7799 ♦ Fax 619-564-3408 ♦ E-mail) stan2u@gmail.com

Report of Independent Registered Public Accounting Firm

To the Board of Directors of

China Capital Finance Corp.

(Formerly China Quest Acquisition Corp)

We have reviewed the accompanying condensed balance sheet of China Capital Finance Corp. as of March 31, 2011, and the related interim condensed statements of operations and cash flows for the 3-months period then ended. These financial statements are the representation of the management .

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) , the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying condensed consolidated financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

The financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s lack of operations to date and liquidity raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Stan J.H. Lee, CPA
Stan J.H. Lee, CPA

May 19, 2011

Fort Lee, New Jersey

Registered with the Public Company Accounting Oversight Board

Member of New Jersey Society of Certified Public Accountants

China Capital Finance Corp. Inc

(Formerly China Quest Acquisition Corp.)

Balance Sheets

	as of March 31			as of December 31,
	2011			2010
	(Unaudited)			(Audited)

Assets:

Current Assets:

Cash and Cash Equivalent	$	-		$	-

Total Assets	$	-		$	-

Liabilities and Shareholders' Equity:

Total Liabilities	$	-		$	-

Shareholders' Equity;

Preferred stock ( $.0001 par value) 20,000,000 shares autorixed and none issued and outstanding

Common Stock ( $.0001 par value) 250,000,000 shares authorized and 31,340,000 shares issued and outstanding, respectively		3,134			3,134
Paid-in capital		-			-
Deficit during Development Stage		(3,134	)		(3,134	)
		-			-

Total Liabilities and Shareholders' Equity	$	-		$	-

See Notes to Financial Statements

China Capital Finance Corp. Inc

(Formerly China Quest Acquisition Corp. )

Statement of Operations

					Cummulative since
	3-months ended				January 11, 2008
	March 31		March 31		( inception)
	2011		2010		to March 31, 2011

Revenue	$	-	$	-	$	-

Operating Expenses:

General and administration expense		-		-		3,134
Total Expenses:

Income ( Loss) before income taxes		-		-		(3,134	)

Provision for income taxes		-		-

Net loss	$	-	$	-	$	(3,134	)

Earning (loss) per share - Basic and Diluted		-		-		(0.00	)

Weighted average common shares ( basic and diluted)		3,134,000		3,134,000		3,134,000

See Notes to Financial Statements

China Capital Finance Corp. Inc

(Formerly China Quest Acquisition Corp. )

( a Development Stage Company)

Statement of Cash Flows

					Cummulative since
					January 11, 2008
	3-months ended				( inception)
	March 31, 2011		March 31, 2010		to March 31, 2011

Cash Flows From
Operating Activities

Net loss	$	-	$	-	$	(3,134	)

Changein non-cash working capital items:
stock issued for service		-		-		3,134

		-		-		-

Net Cash provided by (used in) operations		-		-		-

Cash Flows From Investing Activities

Net cash provided by investing activities		-		-		-

Cash Flows From Financing Activities

Net cash provided by financing activities		-		-		-
Net increase (decrease)

Cash at the Beginning of the Period:		-		-		-
Cash at the End of the Period		-		-		-

Supplemental Disclosures of
Cash Flow Information

Interest paid	$	-	$	-	$	-
Income taxes paid	$	-	$	-	$	-

See Notes to Financial Statements

CHINA CAPITAL FINANCE CORP

(FORMERLY KNOWN AS CHINA QUEST ACQUISITION CORP.)

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

AS OF MARCH 31, 2011

NOTE 1 - DESCRIPTION OF BUSINESS

Basis of Presentation

China Quest Acquisition Corp. (the "Company") was incorporated under the laws of the State of Delaware on January 11, 2008. The Company has been inactive since inception and intends to serve as a vehicle to effect an asset acquisition, merger, exchange of capital stock or other business combination with a domestic or foreign business.

The Company has not earned any revenue from operations. Accordingly, the Company's activities have been accounted for as those of a “Development Stage Enterprise" as set forth in Financial Accounting Standards Board Statement No. 7 ("SFAS 7") (ASC 915-10-05) The Company's financial statements are identified as those of a development stage company, and that the statements of operations, stockholders' equity and cash flows disclose activity since the date of the Company's inception.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Method

The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on December 31.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash Equivalents

The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

Income Taxes

Income taxes are provided in accordance with Statement of Financial Accounting Standards No. 109 (SFAS 109) ( ASC 740-10) , Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. There were no current or deferred income tax expenses or benefits due to the Company not having any material operations for period ended MARCH 31,2011.

Earnings per Share

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period

Impact of New Accounting Standards

The Company does not expect the adoption of recently issued accounting pronouncements to have a material impact on the Company's results of operations, financial position, or cash flow.

NOTE 3 - GOING CONCERN

The Company's consolidated financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"), and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company currently has no source of revenue to cover its costs. The Company will limit all operational activities to searching and consummating a business combination. The Company will offer non-cash consideration and seek equity lines as the sole method of financing for the near term. If the Company is unable to secure financing until a business combination is consummated, it may substantially limit or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

NOTE 4 - SHAREHOLDER'S EQUITY

On January 11, 2008, the Board of Directors issued 31,340,000 shares of common stock for $3,134 in services to the founding shareholder of the Company to fund organizational start-up costs.

The Company has the following classes of capital stock as of March 31, 2011:

Common stock – 250,000,000 shares authorized; $0.0001 par value; 31,340,000 shares issued and outstanding.

Preferred stock – 20,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

In this report references to “China Quest Acquisition”, “the Company”, “we,” “us,” and “our” refer to China Quest Acquisition Corp., a Delaware corporation.

FORWARD LOOKING STATEMENTS

The U.S. Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “will,” “intend,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

The following discussion and analysis should be read in conjunction with our financial statements and notes to the financial statements included elsewhere in this report as well as the 10-KSB annual report. This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend that the forward-looking statements be subject to the safe harbors created by those sections.

COMPANY OVERVIEW

We were organized on January 11, 2008, as a blank check or shell company under the Laws of the State of Delaware. We do not currently engage in any business activities that provide cash flow. From inception, our primary activity has been directed towards organizational efforts, compliance matters and locating potential merger or acquisition candidates. Our primary purpose is to engage in a merger with or acquisition of one or more private domestic or foreign companies.

BUSINESS COMBINATION

Our main objective is to achieve long-term growth potential through a combination with a business. We will not restrict the potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business. At present, we have no business opportunities under contemplation for acquisitions. No assurances can be given that we will be successful in locating or negotiating with any target business.

We may consider a business which has recently commenced operations, is a developing company in need of working capital, is seeking to develop a new product or service, or is an established business which may be experiencing financial or operating difficulties and is in need of additional capital. Alternatively, a business combination may involve the acquisition of, or merger with, a company which does not need substantial financing, but which desires to establish a public trading market for its shares.

Any selected target business may be a financially unstable company or an entity in its early stages of development or growth, including entities without established records of sales or earnings. In that event, we will be subject to numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk, and, although management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that management will properly ascertain or assess all significant risks.

The business combination will most likely take the form of a non-cash merger, stock swap or stock-for-assets exchange. It is anticipated that any securities issued in any such business combination would be issued in reliance upon exemption from registration under applicable federal and state securities laws. As may dictate by the transaction, the surviving company may register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter.

RESULTS OF OPERATION

Net Revenue

The net revenues for the three months ended March 31, 2011 was $0.

Operating Expenses

The operating expenses for the three months ended March 31, 2011 was $0.

The operating expenses for the nine months ended March 31, 2011 was $0.

Net Income

As a result of the above, the net income for the three months ended March 31, 2011 was $0. The basic and diluted income per share was $0 during the three months ended March 31, 2011

Liquidity and Capital Resources

As of March 31, 2011, we have $0 in cash and assets and $0 in current liabilities.

Cash Flows from Operating Activities

We do not currently engage in any business activities that provide cash flow. The costs of investigating and analyzing business combinations will be financed by our stockholders, management or other investors.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC. This information is accumulated to allow timely decisions regarding required disclosure. Our Chief Executive Officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our CEO concluded that our disclosure controls and procedures were effective.

Management’s Report on Internal Control over Financial Reporting

Our CEO is responsible to design or supervise a process to be effected by our board of directors that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The policies and procedures include:

• maintenance of records in reasonable detail to accurately and fairly reflect the transactions and dispositions of assets,

• reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors, and

• reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

Our management determined that there were no changes made in our internal controls over financial reporting during the third quarter of 2008 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

Not applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number, Name and/or Identification of Exhibit

31	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CHINA CAPITAL FINANCE CORP

(FORMERLY KNOWN AS CHINA QUEST ACQUISITION CORP.)

(Registrant)

Date:

By:	/s/ Chin Yung Kong
Name: Chin Yung Kong
Title: Chief Executive Officer,
Principal Financial Officer and Director

China Capital Finance Corp. Inc. 10-Q