09:19     AIR CHINA<00753> - Announcement                                     

    This announcement is for information purposes only and does not           
    constitute an invitation or offer to acquire, purchase or subscribe       
    for securities. In addition, the H Shares may not be offered or sold      
    in the United States absent registration or an exemption from             
    registration.                                                             
                                                                              
    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes no representation as to its      
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss whatsoever arising from or in reliance upon       
    the whole or any part of the contents of this announcement.               
                                                                              
    Unless otherwise defined herein or the context otherwise requires,        
    terms defined in the prospectus dated 3 December 2004 (the "Prospectus")  
    issued by Air China Limited (the "Company") have the same meanings when   
    used in this announcement.                                                
                                                                              
    AIR CHINA LIMITED                                                         
                                                                              
                                                                              
    (a joint stock limited company incorporated                               
    in the People's Republic of China with limited liability)                 
    (Stock Code: 753)                                                         
                                                                              
    STABILIZING ACTIONS AND                                                   
    END OF STABILIZATION PERIOD                                               
                                                                              
    Summary                                                                   
                                                                              
    *       The Company announces that the stabilization period in connection 
    with the Global offering ended on 7 January 2005.                         
                                                                              
    *       The only stabilizing actions undertaken before expiration of the  
    stabilization period were over-allocations made in the International      
    Offering and the exercise in full of the Over-allotment Option referred   
    to in the Prospectus in respect of an aggregate of 420,852,000            
    additional H Shares, solely to cover such over-allocations in the         
    International Offering.                                                   
                                                                              
    The Company makes this announcement pursuant to Section 9(2) of the       
    Securities and Futures (Price Stabilizing) Rules and announces that       
    the stabilization period in connection with the Global Offering ended     
    on 7 January 2005. Before expiration of the stabilization period, the     
    only stabilizing actions undertaken were over-allocations made in the     
    International Offering and the exercise in full by the Joint Global       
    Coordinators on behalf of the International Underwriters on 7 January     
    2005 of the Over-allotment Option referred to in the Prospectus in        
    respect of an aggregate of 420,852,000 additional H Shares,               
    representing approximately 15% of the Offer Shares initially available    
    under the Global Offering, solely to  cover such over-allocations in      
    the International Offering. The details of the exercise of the            
    Over-allotment Option are more particularly described in the Company's    
    announcement of 7 January 2005.                                           
                                                                              
    By Order of the Board                                                     
    Air China Limited                                                         
    Li Jiaxiang                                                               
    Chairman                                                                  
                                                                              
    Beijing, 11 January 2005                                                  
                                                                              
    As at the date of this announcement, the Directors of the Company are     
    Messrs Li Jiaxiang, Kong Dong, Wang Shixiang, Yao Weiting, Ma Xulun,      
    Cai Jianjiang, Fan Cheng, Hu Hung Lick, Henry, Wu Zhipan and Zhang Ke.