China Aerospace to invest in Hainan project

Hong Kong-listed China Aerospace International Holdings Ltd<31> announced it will invest about RMB 1.2 billion to develop an aerospace project in Wenchang city, Hainan province.

According to the company's agreement with the Wenchang government, the project will be 70% and 30% owned by China Aerospace and the local government, respectively.

Covering an area of 6,100 mu, the project includes an aerospace technology commercial center, an aerospace theme park, a resort and housing.

RMB 670 million of the total investment will be allocated for infrastructure construction, which is expected to be completed within four years. RMB 530 million will be set aside for compensation payments for demolition and resettlement and other expenses.

China Aerospace is a subsidiary of China Aerospace Science & Technology Corporation (CASC).

The company's shares resumed trading yesterday and surged 3.08% to close at HK$0.67.