China to set up $2.7b plane-making company

Shanghai: China will set up a 19 billion yuan ($2.7 billion) company in Shanghai on Sunday to develop and build a large passenger jet, the 21st Century Business Herald reported, citing people it didn't identify.

The state-owned Asset Supervision and Administration Commission (Asac) will invest 6 billion yuan to become the largest shareholder of China Commercial Aircraft Co., the Beijing-based newspaper reported.

Stakeholders

The Shanghai city government will spend 5 billion yuan to take the second-biggest stake, it said.

Zhang Qingwei will be appointed chairman of the company and Jin Zhuanglong will be named president, the newspaper said.

China Aviation Industry Corp. I, or Avic I, will invest 4 billion yuan, the newspaper said.

Avic II, Baosteel Group Corp., Aluminum Corp. of China and Sinochem Corp. will each invest one billion yuan in cash, it said.