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 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.

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 Order of the Board of
China Aerospace International Holdings Limited

Chan King Chung
Company Secretary

Hong Kong, 4th January, 2000"