STABILISING ACTIONS AND END OF STABILISATION PE...

Air China Limited
12 January 2005

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,
CANADA OR JAPAN.

STABILISING ACTIONS AND END OF STABILISATION PERIOD

Unless otherwise defined herein or the context otherwise requires, terms defined
in  the  listing  particulars dated 3 December 2004 (the  "Listing  Particulars"
which  expression  shall include the supplementary listing particulars  dated  9
December  2004)  issued  by  Air China Limited (the  "Company")  have  the  same
meanings when used in this announcement.

The  Company  announces  that the stabilisation period in  connection  with  the
Global offering ended on 7 January 2005.

The  only  stabilising actions undertaken before expiration of the stabilisation
period 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
Listing  Particulars  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.

This  announcement is for information purposes only and does not constitute,  or
form  part of, any offer or invitation to sell or issue, or any solicitation  of
any offer to subscribe for or purchase, any securities in Air China Limited.

The  information contained herein does not constitute an offer of securities for
sale  in the United States. Securities may not be offered or sold in the  United
States  unless  they  are  registered  under  applicable  law  or  exempt   from
registration.

This  announcement  is  not  for  distribution in  the  United  States,  Canada,
Australia  or Japan. No securities have been marketed to, nor are available  for
purchase  in whole or in part by, the public in the United Kingdom or elsewhere.
The  distribution  of  this announcement in certain other jurisdictions  may  be
restricted  by law and therefore persons into whose possession this announcement
comes  should  inform  themselves about and observe any such  restrictions.  Any
failure  to  comply with these restrictions may constitute a  violation  of  the
securities laws of any such jurisdiction.