CHINA AEROSPACE<0031>-Exceptional Price & Turnover Movements

The Stock Exchange has received a message from China Aerospace 
International Holdings Limited which is reproduced as follows:-

"This Statement is made at the request of The Stock Exchange of Hong Kong 
Limited.

We have noted the recent increases in the price and the trading volume of 
the shares of the Company and wish to state that for the announcement 
dated 1st December, 1999, we are not aware of any reasons for such 
increases.

We also confirm that there are no negotiations or agreements relating to 
intended acquisitions or realisations which are discloseable under 
paragraph 3 of the Listing Agreement, neither is the Board aware of any 
matter discloseable under the general obligation imposed by paragraph 2 of 
the Listing Agreement, which is or may be of a price-sensitive nature.

Shareholders are requested to exercise caution in dealing in the shares 
of our Company.

The Directors of the Company (save for Mr. Wang Guolin and Ms. Chan 
Ching Har, Eliza who are non-executive director and independent 
non-executive director respectively and are not contactable prior to the 
issue of this announcement) individually and jointly accept the 
responsibility for the accuracy of this statement.

By the Order of the Board of
China Aerospace International Holdings Limited

Chan King Chung
Company Secretary

8 December, 1999"