China's large jumbo aircraft firm established in Shanghai

China's first giant-passenger plane company was formally set up in Shanghai with registered capital of RMB 19 billion, sources reported.

It was named China Commercial Aircraft Co, and Zhang Qingwei, minister of the State Commission of Science, Technology and Industry for National Defense was appointed as chairman of the board.

The Chinese government and the Shanghai government are the big shareholders with investment of RMB 6 billion and RMB 5 billion respectively. China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II) jointly invested RMB 5 billion, while Baosteel, Chinalco and Sinochem invested RMB 1 billion each in the new company.

It is also reported that RMB 60 billion will be used for the R&D of jumbo planes, and China plans to fly the first of such homegrown plane in 15 years.