CHINA AEROSPACE<0031> - Announcement

The Stock Exchange of Hong Kong Limited takes no responsibility 
for the contents of this announcement, makes no representation 
as to its accuracy or completeness and expressly disclaims any 
liability whatsoever for any loss howsoever arising from or 
in reliance upon the whole or any part of the contents of this 
announcement.

CHINA AEROSPACE INTERNATIONAL HOLDINGS LIMITED
(Incorporated in Hong Kong with limited liability)

Announcement

China Aerospace International Holdings Limited (the 
``Company'') is considering a fund raising exercise. However, 
no final structure has been reached.

Shareholders and investors are advised to exercise caution in 
dealings in the shares of the Company.

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 except the 
following:

The Company has been recently approached by a number of 
merchant banks in respect of fund raising exercise of the 
Company (including equity financing and debt financing). 
However, the structure, terms (including pricing and the 
amount raised) and the use of proceeds (which may be for the 
Company's investment in the Digital Video Broadcasting --- 
Cable Service in the PRC as described in the Company's 
announcement dated 10th December, 1999) have not been 
determined and no merchant bank has been appointed. Details 
of the terms of the fund raising exercise will be announced 
if and when they are finalized. As such, the fund raising 
exercise may or may not proceed.

We also confirm that, save as disclosed above, 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 and investors are advised to exercise caution in 
dealings in the shares of the Company.

Made by the order of the Board of the Company, the directors 
of which (save for Messrs. Li Baoan and Wang Guo Lin, who are 
non-executive directors and Ms. Chan Ching Har, Eliza, who is 
independent non-executive director, and are not contactable 
prior to the issue of this announcement) individually and 
jointly accept responsibility for the accuracy of this 
statement.

By Order of the Board
Chan King Chung
Company Secretary

Hong Kong, 21st January, 2000