The plan is now being reviewed by the China Securities Regulatory Commission and will be submitted to the State Council for final approval, Zhang said.

"Helped by relevant government departments, the preparatory work on AVIC II's listing on the stock exchanges has been proceeding well," Zhang said.

The basic work of checking, evaluating and auditing the corporation's assets is finished, he said.

"We are trying to get the company listed as soon as possible," he said.

The listing of the corporation, a major aviation company which makes the majority of the country's aircraft and all types of helicopters, will include all major business units, with the exception of some core military-operations units, Zhang said.

The capital raised will be used to fund businesses such as aircraft manufacturing, helicopter manufacturing and mini-van production, he said.

"The time is basically ripe for us to establish a large international company, because we already have a lot of experience in re-organizing and listing smaller industrial firms."

AVIC II has already brought six sub-member companies public on the domestic stock exchanges.

Last year, the corporation turned out 28 billion yuan (US$3.4 billion) in industrial output and posted 20.2 billion yuan (US$2.4 billion) in sales income, a year-on-year increase of 29.4 per cent and 22.1 per cent, respectively.

AVIC II made 20 million yuan (UUS$2.4 million) in profits last year.

This year, the company plans to achieve 10 per cent growth in both industrial output and sales income. It is also aiming for profits of 50 million yuan (US$6 million).

"In the coming three to five years, we will make eight types of new civil and general-use aircraft models including helicopters and passenger jets," Zhang said.

The central government's decision to develop the western part of the country and the success of Beijing's bid to host the 2008 Olympics will open opportunities for the use of aircraft, he said.

By 2005, the annual industrial output of AVIC II should reach 36 billion yuan (US$4.3 billion) and its annual sales income should reach 26 billion yuan (US$3.1 billion).

The corporation's profits are expected to reach 300 million yuan (US$36.1 million) by then.

AVIC II was founded in late 1990s following the break-up of the former China Aviation Industry Corp. It is now under direct control of the central government.

(China Daily January 13, 2003)