On 27 June 2008, the Company entered into the Sale and Purchase Agreements with the Buyer regarding the sale and purchase of the Aircraft in accordance with the terms and conditions thereof. To the best knowledge, information and belief of the Directors having made all reasonable enquiry, the Buyer and its ultimate beneficial owner(s) are third parties independent of the Company and connected persons (as defined in the Listing Rules) of the Company, and are not connected persons of the Company.

The AGM was held at Meeting Centre, Shanghai Homeyo Hotel (上海航友賓館), 2550 Hongqiao Road, Shanghai, the PRC on Monday, 30 June 2008. Shareholders representing 3,251,040,427 shares of the Company were present, in person or by proxy, at the AGM. The AGM was validly convened in compliance with the relevant requirements under the Company Law of the PRC and the articles of association of the Company.

Shares of Chinese companies listed in the U.S. opened mixed to day after steep losses in last week. oil compnies are in focus again. China's offshore specialist, CNOOC Ltd. (CEO), is enjoying a ride on the back of strong oil prices. The stock is up $4.25 or 2.68% at the open. High oil prices hurt refiners. Asia's largest refiner, Sinopec (SNP) opened -0.23 percent lower while Petrochina (PTR), China's largest oil produceer with a significant refining on its own, opened -0.65 percent lower. China's decision to increase gasoline and diesel retail prices last week sent prices of refiners out the roof just to see them tumbling the next day. Overall SNP and PTR are trading sideways signalling as if the markets haven't figured out what to make out of the price increae combined with record oil prices yet. SNP is red while PTR is blue on the following chart.

Shares of Chinese ADRs followed suit tracking Wall Street lower this week. As the following table sums it all up, Chinese ADRs fell -4.2% this week, on average. Losers outnumbered stocks that closed higher for the week by 35 to 11.

We took the risk to say a month ago that “we think Chinese equities are nearing the bottom. Looking at Asia and China in particular, we find both macro and micro economic data to fuel our optimism. “ Since then the China ADR Index (CAI) rallied 7.5% in line with the Hang Seng’s 7.0% comeback, outshining the Shanghai Composite’s modest 3.7% rally. Have Chinese equities bottomed out?

Stock markets in the U.S. continued to slug: inflation concerns and high oil kept pressure on equity markets. Tuesday's economic data illustrated how the steep run-up in energy costs this year is affecting businesses. The Labor Department data showed that producer price index jumped 1.4 percent in May, the largest increase since last November. The DJIA shed 108.78 points. The S&P 500 index, a measure of the broader market, fell 9.21 points to 1,350.93, while the Nasdaq composite index fell 17.05, or 0.69 percent, to 2,457.73.

NOTICE IS HEREBY GIVEN THAT the 2007 annual general meeting (the “AGM”) of 中國東方航空股份有限公司 (China Eastern Airlines Corporation Limited) (the “Company”) will be held at Meeting Centre, Shanghai Home You Hotel (上海航友賓館), 2550 Hongqiao Road Shanghai, the People’s Republic of China (“PRC”) at 9:30 a.m. on Monday, 30 June 2008 for the purpose of considering the following matters:

Reference is made to the announcement and circular of the Company dated 12 May 2005 and 19 May 2005 respectively in relation to, amongst others, the Continuing Connected Transactions in respect of agreements for the provision of goods and/or services between certain members of the CEA Holding Group and the Group. The Company has, in view of the expiration of the agreements relating to the Continuing Connected Transactions, entered into respective agreements relating to the Continuing Connected Transactions. It is the Company’s intention to finance the Renewed Continuing Connected Transactions through its internal resources.

The board of directors (the “Board”) of China Eastern Airlines Corporation Limited (the “Company”) announces the audited consolidated financial results of the Company and its subsidiaries (collectively, the “Group”) prepared under IFRS for the year ended 31 December 2007 with comparative figures for the corresponding year of 2006 as follows:

On 30 January 2008, the Company has entered into the Agreement with Boeing Company regarding the purchase of the Aircraft in accordance with the terms and conditions thereof. Based on the information provided by Boeing Company, the total asset value of the Aircraft, as determined by reference to the relevant catalogue price supplied by Boeing Company, amounts in aggregate to approximately US$1.94 billion (approximately RMB13.98 billion). The Company has not conducted any independent valuation on the Aircraft.

Despite sluggish domestic stock performance in 2007 China stock investors have a good reason to cheer. The Shanghai Composite Index climbed 96.7 percent on the year, making it the world’s best performing major bourse in 2007. Chinese companies listed in Hong Kong were just as strong, shooting up 59 percent followed closely by the broader Hang Seng Index. Hong Kong blue chips rose 39 percent in 2007, representing its best annual rise since 1999. All major Chinese indices ended 2007 on a high note, prompting questions how long the China bull will run.

Chinese New Year celebrations closed down the Hong Kong and Shanghai Stock exchanges. This has no effect on the trading of Chinese stocks listed on U.S. exchanges. The China ADR Index (CAI) gained 21.14 points on Thursday, fueled by strong gains in the telecom sector, particularly CHL.

Chinese stocks listed on American exchanges are down for the year 2008, tracking Wall Street sentiment relatively closely. CAI, CYI and CQI are market cap weighted indices and as such are tracking large cap companies very closely. China telecom sector got caught on fire in the afternoon on news of a possible industry revamp and its implications. CHU, China's smaller mobile carrier is expected to benefir from the industry reshuffle. China Unicom rose 2.2% to $22.78.

The problem is that this upswing is not likely to cause any effect on current NYSE and NASDAQ listed prices of Chinese shares, simply because this bounce back was caused by Wall Street and not the other way around. Basically Hong Kong listed prices just reacted to yesterday's trading in the U.S. and as such will have negligible effect on today trading.

A near 20 percent correction in four weeks has wiped $700 billion off the Shanghai Stock Exchange, making global investors nervous about a possible China meltdown. Considering the 132% run of the Shanghai Composite in 2006 and a subsequent 125 percent run in 2007 before the current pullback, a bubble theory has ample room to develop. The question is this. Is there a bubble and if so how to hedge against that?

Stocks that are oversold big time and thus are ready for comeack today are ACH, HNP, CEA and YZC. Plus shares of Chinese fixed-line operators China Telecom Corp. and China Netcom Group Corp. gained for a second session in Hong Kong Tuesday on expectations they could soon receive third-generation cellular licenses. So that rally is not technical but fundamental in nature so don't try to find it on this screen. Still, CHA and CN are about to cheer investors to day, too.

China stocks post biggest weekly loss in a decade: China's main stock index closed Friday with a weekly loss of 8 percent, its biggest weekly drop since May 1997. Chinese ADR portfolio was just as bad with no clear indication where the bottom is. Look up from the table below how your Chinese stocks did.

The last trading day of September was a happy one. Our favorite proxy for the overall China ADR* universe, the iShares FTSE/Xinhua China 25 Index (FXI), closed at $180.00 marking an exact 20% run over the month. What makes this rally even more remarkable is the strong underlying volume. We know that Hong Kong is the home market for the most prominent FXI components. So we found comfort in the news that Hong Kong blue chips rose 0.3 percent amid unprecedented volume on Friday, September 28th, closing out the quarter with their best gain since the end of 1999. The Hang Seng Index gained 13.6 percent for the month and 24.7 percent for the three months ended in September.

The good news is that both Hong Kong - NYSE listed airliners, China Eastern Airlines (CEA) and China Southern Airlines (ZNH) were hot in Hong Kong. CEA went up 7.4% while ZNH closed 4.5% higher. Air China (0753.HK), not listed in the U.S., went up 3.7%. Looks as if the market knows something. Think we should listen.

CEA's September record month through the eye of an analyst. Factors contributing to the ups and downs and finally, lessons to be learnt.

Hope you had steel nerves in August. Referring back to the main article in our previous Newsletter, “Strong stomach needed”, we could not have timed that article better. August turned out to be a heck of a month. U.S. subprime problems put pressure on equity markets globally, sinking our favorite proxy for U.S. listed Chinese stocks, the FXI, 15 percent by Aug 16th. Then the FED’s decision to lower inter-bank lending rates by a half point sent our benchmark up 20 percent by Aug 27th, just to see those gains evaporate the next day. Still, investor optimism fuelled the index to a 7.43 percent gain for the month, attributed to further rate-cut hopes and news that the U.S. governments would help tackle the subprime mortgage problem.

China telecom stocks (CHL, CN, CHA, CHU), China Life Insurance (LFC) face a potentially GREAT day. Plus take a look at the China stock universe from a technical point of view.

Market update: reflections on the Pre-market report at 11:00A.M.

Before the bell: strong Hong Kong and Shanghai trading suggests another bullish day for China ADRs. Look for YZC, ACH, PTR, CEO, CHL, BIDU

Technical analysis of China ADRs. Stocks mentioned: NTES, BIDU, CHL, SOHU, ACH, CEA, YZC, SINA

Before the bell: what to expect from today's Chinese adrs. CEA, ZNH, BIDU, CEO,

China Eastern Airlines (NYSE:CEA) 2007 first six month financial analysis: draft

Are Chinese share overvalued? This publication compares the U.S. listed China stock universe with valuation of the DJIA, Hang Seng and Shanghai Composite stocks.

Chinese stocks have risen since the notorious 9 percent intraday plunge in late February. As the matter of fact, the Shanghai Composite (^SSEC) is up almost 25 percent since the incident while the record breaking DJIA barely keeps space with such a sharp rally.

We are bullish on Chinese stocks. It seems to us however that average American investors got a distaste of China after the 9 percent plunge in Shanghai on February 26 that sent global equity markets south. As a result, March has been a very quiet month for us, stock researchers, while this was the time stock research would have been needed the most. We will get back to this later.

Earnings announcements are one of the most important moments for public companies. This is a bonanza for fundamental analysts who can x-ray the companies by examining these financial statements.

Liquidity, or the ability to buy and sell large blocks without effecting the share price, is perhaps the most important factor for institutional investors in choosing where to execute their trades. Looking at the Chinese stock universe from an American investor’s point of view, there are three markets that investors would consider: the NYSE, the NASDAQ and the Hong Kong Stock Exchange. Investing in Shanghai and Shenzen is still limited for foreigners and is further complicated by corporate accounting differences and information asymmetry.

Our previous Newsletter focused on the NASDAQ names of the U.S. listed Chinese stock universe. As we said, this issue will give readers a unique perspective of the NYSE listings. As the following chart shows, we chose the twenty biggest names by revenue from the NYSE universe this time . We will compare them to make a point that not everything that shines is gold. In other words, not all the big liquid names offer investment opportunities just because China is growing fast.

I can’t help but quote from our February Newsletter, page 4 last paragraph. “Based on our latest field trip to China, Chinavestor.com expects The9 Ltd. (NCTY) to report a nice surprise. On the other hand, we did not see much activity of Shanda’s line of products and expect the battled game and home entertainment developer to slip.” End of quote. So when Shanda released earnings after the close on February 27th, disappointing news did not surprise us. China’s top online game operator said it swung to a quarterly loss and missed Wall Street revenue targets as online game sales weakened, sending its shares down 19 percent after hours.