Illegal reduction of major shareholder of Hongdu Aviation

Hong du Airlines (600316) 28th announced that September 27 the company received a controlling shareholder of China Aviation Technology Industry Co., Ltd. notice, as of September 27, 2010 Close, the Chinese airlines through the Shanghai Stock Exchange system accumulated sales of the company unlimited conditions of circulation 7.4 million shares, accounting for the company's total share capital of 1.65 %, of which: from August 18, 2010 to September 9, 4.45 million shares were sold, accounting for 0.99% of the company's total equity and 2.96 million shares on September 27, 2010, 0.66% of the company's total equity.　　After the reduction, the AVIC still holds 197 million shares of the company's shares, accounting for 43.96% of the company's total equity, and remains a controlling shareholder of the company. However, China Securities News reporter through the investigation found that as early as July 3, 2008, Hongdu Airlines has received a commitment letter from the controlling shareholder, the commitment letter, in order to strengthen the BOC Branch aviation business development, reflecting the holding shareholder of the holding listed companies long-term development support,　　China Airlines, which has pledged to suspend shares in circulation on September 19, 2008, has voluntarily continued to lock in for two years to September 19, 2010 since September 19, 2008, while its shares, which had been lifted 2008 years ago, were not reduced in the two-tier stock market before September 19, 2010. According to the regulations issued by the SFC on April 20, 2008, the second article stipulates that the transfer of stock shares of listed companies shall satisfy the requirements of the securities Law, company law and other laws and regulations as well as the regulations of the Chinese Securities Regulatory Commission on the term of stock holding and the disclosure of information. and to comply with the transferor's own commitment to the term of ownership.　　Therefore, if strictly in accordance with the commitment letter of September 19, 2010 not to reduce the commitment of the shares of Hong Airlines, China Airlines in the August 18 to September 9 sales of the 4.45 million shares of Hong Aviation stock is illegal reduction.　　In this connection, the reporter called The Avic and the Hong Du Aviation Securities Affairs Department for Consultation, the former declined to interview the reporter, the latter said that the division of the Air Science and engineering in the other side for their own operational considerations, the company's future operations do not cause any substantial impact, but is not a violation of the ownership to be held with the holding shareholder further verification. Everbright Securities industry analyst Lu Zhou that China Aviation Division work for the AVIC industrial investment-type holding platform, non-entity enterprises, for Hongdu Aviation in the capital and technology is not too much support, Hongdu Aviation and its group daily operation or by Avic Industrial group more influence, so the large shareholder reduction on the future development of Hongdu aviation does not cause substantial impact.　　As the AVIC industry itself is a Hong Kong listed company, it does not rule out the possibility of reducing the current year-end performance. September 29, Hong du Airlines closed at $61.83, down 2.04% from the previous session.