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Avic gets HK listing in gear

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Wang Xiangwei

After years of restructuring and delays, Aviation Industries of China (Avic) has chosen the Nanjing Jincheng Machinery Co, one of China's largest motorcycle makers, to list in Hong Kong this year.

Nanjing Jincheng Machinery would replace Avic subsidiary Xian Aircraft Co for the listing, Avic officials said yesterday.

They said another Avic subsidiary, China Aviation Technology Import & Export Corp Shenzhen Branch, was undergoing restructuring for an H-share listing.

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Xian Aircraft Co, which manufactures both civilian and military aircraft and parts, had been included in the second batch of state-owned companies approved in 1994 for overseas listings.

That long-delayed flotation now seems to be have been scrapped.

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David Yeh, chairman of TL Aero-Fund Investment Management, a US$100 million fund co-sponsored by Avic, said Jincheng Machinery, with a total investment of one billion yuan (about HK$932.5 million) was the mainland's third-largest manufacturer of motorbikes, but ranked second in terms of profits last year.

The fund has a 10 per cent stake in the motorbike venture.

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