Air China Limited (Air China) has approved three new financial services framework agreements with China National Aviation Finance (CNAF), covering operations with the airline itself, parent China National Aviation Holding Corporation (CNAHC) and subsidiary Air China Cargo (ACC). All agreements run from 1 January 2027 to 31 December 2029, replacing the current contracts that expire at the end of 2026.
Key transaction limits 1. Air China Financial Services Agreement • Maximum daily deposit balance (including interest) with CNAF: – 2027: RMB22.00 billion – 2028: RMB23.00 billion – 2029: RMB24.00 billion
2. CNAHC Financial Services Agreement • Maximum daily loan balance to CNAHC Group: RMB2.50 billion per year for 2027-2029. • Revolving comprehensive credit line (loans, bill discounting, guarantees, etc.): up to RMB9.00 billion per year.
3. ACC Financial Services Agreement • Maximum daily loan balance to ACC Group: RMB6.00 billion per year for 2027-2029. • Revolving comprehensive credit line: up to RMB6.00 billion per year.
Pricing and risk management • Deposit rates paid by CNAF to Air China must not be lower than those offered by PRC state-owned commercial banks for comparable tenors. • Loan and fee rates charged by CNAF to CNAHC and ACC must not exceed, and in many cases must benchmark, those charged by major banks under equivalent conditions. • CNAF is required to observe National Financial Regulatory Administration (NFRA) ratios, maintain at least a 25 % current ratio, and prohibit use of group deposits in high-risk investments.
Regulatory implications • Because CNAF is 51 % owned by Air China and 49 % by CNAHC, it is a connected person under Hong Kong Listing Rules. • Air China’s deposit caps exceed the 5 % threshold, making the deposit services both a discloseable transaction (Chapter 14) and a continuing connected transaction (Chapter 14A) requiring announcement, annual review and independent shareholder approval. • Combined loan caps for CNAHC and ACC also cross the 5 % connected-transaction threshold and will follow the same approval route. • Other financial services (settlement, advisory, etc.) are expected to stay below the de minimis level and are exempt.
Next steps An annual general meeting (AGM) will be convened to seek independent shareholder approval. A circular—containing the Independent Board Committee’s opinion and an independent financial adviser’s report (Opus Capital Limited)—will be issued on or before 8 May 2026.
Board participation Directors with overlapping roles at CNAHC or Cathay Pacific abstained from voting; the remaining board members, including all independent non-executive directors, consider the agreements to be on normal commercial terms, fair and reasonable, and in the interests of Air China and its shareholders as a whole.