China Aviation Industry Group to split arms' car assets

AviChina Industry & Technology Co., Ltd. (SEHK: 2357), which is controlled by China Aviation Industry Corporation II (AVIC II), will peel off all of its automobile operations to focus on aviation industry.
 
China Aviation Industry Group Corporation, a restructuring vehicle of AVIC I and AVIC II, will transfer the car operations of the Hong Kong-listed company, which made CNY 11.214 billion turnovers or 67.79% of the listed company's total revenues in 2007, to its car business division.

The Hong Kong-listed company, whose Shanghai-listed arm Jiangxi Changhe Automobile Co., Ltd. (SHSE: 600372) has split off its car operations, will separate the automotive engines of its other two flagship arms Harbin Hafei Automobile Industry Group Co., Ltd. and Harbin Dong'an Auto Engine Co., Ltd. (SHSE: 600187).

All the car operations of China Aviation Industry Group will be restructured under its car business division with each brand and its partners remain unchanged. The group will give substantial support to Changhe Automobile after directly controlling the latter.