China Aviation Giant Mulls Spinoff of Two Financial Units

Aviation Industry Corp. of China, the country’s biggest state-owned aviation conglomerate, is considering spinning off its securities and trust units to address debt challenges, according to people familiar with the matter.

AVIC has held discussions with another state-owned company China Merchants Group Ltd., the people familiar said, requesting not to be named because the matter is private. AVIC controls AVIC Trust Co. and Avic Securities Co. through its subsidiary.