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<SEC-DOCUMENT>0001145549-06-001279.txt : 20070726
<SEC-HEADER>0001145549-06-001279.hdr.sgml : 20070726
<ACCEPTANCE-DATETIME>20060907090800
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001145549-06-001279
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060907

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA YUCHAI INTERNATIONAL LTD
		CENTRAL INDEX KEY:			0000932695
		STANDARD INDUSTRIAL CLASSIFICATION:	ENGINES & TURBINES [3510]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		16 RAFFLES QUAY #26-00
		STREET 2:		HONG LEONG BLDG
		CITY:			SINGAPORE 0104 SINGA
		STATE:			U0
		BUSINESS PHONE:		0116563226220

	MAIL ADDRESS:	
		STREET 1:		16 RAFFLES QUARY #26-00
		CITY:			SINGAPORE
		STATE:			U0
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>China Yuchai International Limited</TITLE>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-size:14pt"><B>CHINA YUCHAI INTERNATIONAL LIMITED</B></FONT><BR>
<B>16 Raffles Quay #26-00 Hong Leong Building Singapore 048581<BR>
Tel : (65)&nbsp;6220 8411 Fax : (65)&nbsp;6226 0502</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">September&nbsp;7, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><U><B>Via Edgar and Facsimile (1-202) 942-9636</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">United States Securities and Exchange Commission<BR>
Mail Stop 5546<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="11%">&nbsp;</TD>
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    <TD width="5%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">Attention:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Cecilia D. Blye</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Chief</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Office of Global Security Risk</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Peggy Fisher</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Assistant Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Division of Corporation Finance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">James Lopez</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Division of Corporate Finance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Re:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>China Yuchai International Limited</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form&nbsp;20-F</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Filed July&nbsp;15, 2005</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Response Letter Dated August&nbsp;4, 2006 (File No.&nbsp;1-13522)</B></TD>
</TR>
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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Set forth below is China Yuchai International Limited&#146;s (&#147;CYI&#148;) response to the Staff&#146;s comments in
Cecilia Blye&#146;s letter dated August&nbsp;18, 2006. For the Staff&#146;s convenience, the Staff&#146;s comments are
set forth before each response.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>General</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><I>1.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your response to prior comments one and two. You state that the concerns about state
sponsors of terrorism in the U.S. and elsewhere are inapplicable to either CYI or its
affiliates. Please discuss the basis for your view, in light of the investor sentiment
evidenced by investor actions including, but not limited to, the legislative initiatives cited
in our prior comment two.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CYI notes the Staff&#146;s comment and respectfully submits that CYI does not believe that export
sales by its Chinese operating subsidiary, Guangxi Yuchai Machinery Company Limited
(&#147;Yuchai&#148;), to Cuba are material to its current, past or anticipated</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>operations or represent a material concern for CYI&#146;s investors, from either a quantitative
or qualitative perspective.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s previous comments, CYI has already included the following
disclosure in its Form 20-F for the fiscal year ended December&nbsp;31, 2005 (Item&nbsp;4. Information
on the Company &#151; Business Overview &#151; Sales, Marketing and Services) relating to its export
markets (including Cuba) generally, as well as the memorandum of understanding signed on
March&nbsp;31, 2006 between Yuchai, a Chinese export agency and representatives of the Cuban
Ministry of Transportation, in particular:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Vietnam, Saudi Arabia, Taiwan, Cuba and Kazakhstan (in descending order)
represented Yuchai&#146;s top five export markets in 2005 in terms of number of
units. In particular, Yuchai exported 130, 510 and 339 diesel engine units
to Cuba in 2003, 2004 and 2005, respectively. In April&nbsp;2006, Yuchai signed
a memorandum of understanding with the Cuban government for the export by
Yuchai of approximately 20,000 diesel engines over the next four years.
Yuchai does not expect that sales pursuant to this memorandum of
understanding will have a material impact on its unit production or sales
revenue.&#148;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>However, the sales revenue contributed by exports to Cuba represented only 0.06%, 0.20% and
0.11% of Yuchai&#146;s total sales revenue in fiscal 2003, 2004 and 2005, respectively. Given
the <I>de minimis </I>nature of the amounts involved, CYI does not believe that its export sales to
Cuba have constituted a material investment risk to its security holders. Accordingly, CYI
believes that no specific disclosure about this export data is required to be included in
its annual report on Form 20-F for the fiscal year ended December&nbsp;31, 2005.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CYI acknowledges that investor awareness in the United States and elsewhere has been
heightened in recent years regarding investment in companies which have dealings with state
sponsors of terrorism. However, given the <I>de minimis </I>nature of CYI&#146;s dealings with Cuba,
CYI respectfully submits that it firmly believes that such concerns are inapplicable to
either CYI or its affiliates.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your response to prior comment three and the data concerning North Korean sales by
Henan Xinfei Elelctric Co., Ltd. as a percentage of Xinfei&#146;s total sales. Please discuss the
factors underlying your view that your indirect contacts with North Korea through Xinfei are
immaterial to you in quantitative and qualitative terms. In this regard, we reiterate our
request that you address specifically the impact Xinfei&#146; North Korean contacts may have on
your reputation and share value. Your expanded materiality analysis also should address the
relevance to you of the Xinfei unit and revenue data you supplied.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The sales revenue contributed by sales to North Korea by Henan Xinfei Electric Co., Ltd.
(&#147;Xinfei&#148;), a subsidiary of CYI&#146;s parent company, Hong Leong Asia Limited (&#147;HLA&#148;), for fiscal
years 2003, 2004 and 2005 represented only 0.14%, 0.78% and 0.77%, respectively, of Xinfei&#146;s
total sales revenue in fiscal 2003, 2004 and 2005. The principal products which Xinfei
exports are household refrigerators, as well as other consumer electrical appliances. These
export sales by CYI&#146;s sister company are</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">2
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>immaterial in both quantitative and qualitative terms to CYI. Given the <I>de minimis </I>nature
of these sales consisting principally of consumer electrical appliances by a sister company
of CYI, CYI does not believe that these dealings are material to CYI or its share value, and
therefore do not require specific disclosure in CYI&#146;s periodic filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note from public media reports that you have operations, sales or other contacts with the
Middle East and Africa. Please identify for us the countries in these regions where you have
operations or contacts. We may have further comment.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CYI confirms to the Staff that a very small number of diesel engines manufactured by its
Chinese operating subsidiary, Yuchai, were exported by Yuchai to Turkey in fiscal 2005: 7
units of diesel engines for a total amount of US$28,135. In the current fiscal year, a
similarly small number of diesel engines have been exported by Yuchai to Turkey and Egypt.
There were no such sales to Egypt in fiscal 2005. CYI does not believe that these sales are
material to its current, past and anticipated operations or to its security holders.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you have any questions or comments, please do not hesitate to contact Mr.&nbsp;Philip Ting Sii Tien
at (65)&nbsp;6220 8411.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Respectfully submitted,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">/s/  Philip Ting Sii Tien
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Philip Ting Sii Tien<BR>
Director and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Ms.&nbsp;Sheila Murugasu, China Yuchai International Limited<BR>
Mr.&nbsp;Michael Sturrock, Latham &#038; Watkins LLP, Singapore</TD>
</TR>
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
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