CICC Assists AviChina to Achieve H-share Full Circulation

AviChina Industry & Technology Company Limited (“AviChina”, or the “Company”) announced on May 9, 2018 that it had become one of the first batch of companies to participate in the H-share full circulation pilot programme. It is also the first central enterprise that was approved for the pilot. As approved by the CSRC, AviChina will convert all of its existing domestic shares into H shares, which will be listed and traded on the Hong Kong Stock Exchange. It is the first company that was approved to convert all domestic shares into H shares to achieve full circulation. CICC acted as AviChina’s sole financial advisor in the project.

AviChina is the only defense sector investment holding company listed in Hong Kong under Aviation Industry Corporation of China (“AVIC”), as well as the only flagship aviation company providing high-tech military and civilian aviation products and services in the Hong Kong market. The Company implements good governance practices and is in compliance with the reform and development requirements of the national capital market. The industry to which it belongs receives key support of national policies. It is also an active participant in the innovations and reforms of the capital market. Its approval for the H-share full circulation pilot programme has positive significance for itself and its shareholders, and will further facilitate its implementation of internationalization strategy.

AviChina was listed on the Main Board of the Hong Kong Stock Exchange in 2013. It owns four A-share listed companies, including JONHON Optronic, AVIC Avionics, Hongdu Aviation and Hafei Aviation. Its major aviation products include various types of helicopters, trainers, general aviation components, avionics and accessories. AviChina is also engaged in the investment in the high-tech aviation field, and jointly established a military-civilian integration fund with tens of billions yuan under asset management.

As the sole financial advisor for AviChina's H-share full circulation project, CICC led the scheme discussion and design, project execution and regulatory communication, and actively promoted the successful approval of the project. We are highly recognized by the Company for our innovative product service capabilities, regulatory communication skills, efficient execution and our philosophy of "Client First".