China is set to unveil its own jumbo jet company in Shanghai on Sunday, marking a crucial stage for the country's research and development of giant passenger planes.

The new company, China Commercial Aircraft Co., will have a registered capital of 19 billion yuan (about 2.7 billion U.S. dollars), with the central government and the Shanghai government among the major shareholders, sources close to the matter told Xinhua.

Shareholders of the new company will also include China Aviation Industry Corporation I (AVIC I), the country's largest aircraft producer, and China Aviation Industry Corporation II (AVIC II).

It is widely believed that Zhang Qingwei, minister of the State Commission of Science, Technology and Industry for National Defense, would be the company's board chairman.

The State Council, China's Cabinet, approved the setting up of the giant-passenger plane company in February 2007. This will make the country capable of building aircraft with a take-off weight of more than 100 tonnes or planes with more than 150 seats.