To persuade its minor shareholders to vote for the aforesaid placement plan, China Eastern Airlines will arrange a road show in Hong Kong on Tuesday. And such promotion activities would be followed in Singapore, Beijing and Shanghai.

China Eastern Airlines plans to convene a meeting of A-share and H-share holders on Jan. 8 2008 to vote on the aforesaid proposal.

The company issued a statement on Nov. 12 saying it had signed a special share capital expansion agreement with Singapore Airlines and Temasek on Nov. 9, under which it would place additional H-shares to the two Singapore investors.

According to the agreement, Singapore Airlines and Temasek Holdings will subscribe about 1.235 billion and 649 million additional shares of China Eastern at 3.8 H.K. dollars per share, which would represent 25.38 percent and 13.34 percent of China Eastern’s existing H-share capital respectively.

Recently, a fund manager whose fund is among China Eastern Airlines’ top ten holders of tradable shares complained that the additional issue price at 3.8 H.K. dollars per share is just 1.9 percent higher over the closing price of 3.73 H.K. dollars on May 21, the last trading day before trading of the airline company’s H-shares was suspended.

Market insiders even questioned this would cause loss of state-owned assets.  (Edited by Liu Yanan; e-mail: )