CHINA AEROSPACE<0031>-Exceptional Turnover Movement

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 trading volume of the shares of 
the Company and wish to state for the announcement dated 1st December, 
1999, we are not aware of any reasons for such increases.

We want to clarify that in relation to a press conference on the Company's 
introduction of the first Digital Video Broadcasting - Cable (DVB-C) 
Service in the PRC to be held on Monday, 13th December 1999 (notice of 
which was sent out on 9th December, 1999), the matter to be presented 
thereat would be made is not discloseable under Chapter 14 of the Listing 
Rules.

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 Ms. Chan Ching Har, Eliza who is 
independent non-executive director and Messrs. Li Baoan, Shen Dabin and 
Wang Guolin, who are non-executive directors, 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

10 December, 1999"