New aircraft engine consortium fails to rev up capital market

Response was muted on China's capital markets to the announcement on Thursday that three of the country's major aerospace engine manufacturers are to be controlled by a new State-owned parent company - Aircraft Engine Corp of China.

In separate statements, officials said, the existing Aviation Industry Corporation of China's three listed aerospace engine subsidiaries - AVIC Aviation Engine Corp, Sichuan Chengfa Aero Science and Technology Co and AVIC Aero-Engine Controls Co, which involve around 40 entities - will be combined.

The new company, Bloomberg said, would have 145 billion yuan ($22 billion) in assets,