Investment holding company Shanghai AJ Group is partnering with Juneyao Air to potentially make an investment in an aviation company.

Shanghai AJ, a related party of Juneyao Air, will jointly invest in Shanghai Jidaohang Aviation Technology Partnership, according to a 21 May filing to the Shanghai Stock Exchange.

Juneyao first 787 787-9 101918-2

Source: Boeing

Juneyao announced on 30 April that it would set up Jidaohang Aviation Technology with strategic partners to invest in aviation entities abroad.

The partnership has an investment cap of CNY30 billion ($4.67 billion) and Shanghai AJ intends to invest as much as CNY4 billion, acting as a limited partner.

The proposal still needs to be approved by Shanghai AJ’s board and shareholders.

The announcement from Shanghai AJ came a day after a subsidiary of Chinese conglomerate Fosun International said it was setting up a company with the purpose of investing in airlines.

Chinese financial media Caixin has reported in separate stories on 20 and 21 May, citing sources, that both Fosun’s company and Shanghai Jidaohang Aviation Technology may seek to buy airline assets from HNA Group. Cirium has not independently verified those reports.

Shanghai AJ Group is principally engaged in investment trust service, international trading, and real estate management, according to Reuters data.

Juneyao Air’s chief executive Wang Junjin is also the legal representative of Shanghai AJ Group, according to the Shanghai Stock Exchange.