Aviation Industry Corp of China will inject commercial plane making assets into Xi'an Aircraft International Corp to enhance competitiveness.

Premium assets from the group's Shenyang Aircraft and Chengdu Aircraft will be transferred into the Xi'an unit, Geng Ruguang, executive vice president of the group, said yesterday in Shanghai.

"We will conduct the injection as soon as possible but the assets must be evaluated first," he said.

The Shenyang unit will mainly produce aircraft tails, the Chengdu unit will be in charge of building fronts and Xi'an Aircraft will focus on making wings in the future, Geng said on the sideline of Commercial Aircraft Forum China.

The share price for the Xi'an company rose 3.85 percent to 12.14 yuan (US$1.78) yesterday while the benchmark China CSI300 Index declined 1.06 percent to 1,932.43 points.

Geng said Dongfeng Motor Corp would no longer seek to purchase Harbin Hafei Automobile Industry Group as Hafei had been merged into the group.

China merged its two largest airplane makers earlier this month to build the group in a bid to compete with overseas rivals such as Airbus and Boeing.

The group runs nearly 200 subsidiaries, owns assets of more than 290 billion yuan and has 400,000 employees. Its business covers 10 sectors, including defense, engines, helicopters, aircraft, trade and asset management.

There are 21 listed companies under the group.

The group aims at listing in five years and listing its subsidiaries within three years.