China Eastern Airlines Corp, the nation's third-largest carrier, fell the most in a month in Hong Kong trading yesterday after expanding a sale of discounted new shares to its state-owned parent.
The company will sell 1.44 billion new Hong Kong-listed shares at 1 yuan each and the same number of new Shanghai shares at 3.87 yuan (57 US cents) each, it said on Monday. That's 12 percent and 17 percent less than the December 24 closing prices, Bloomberg News said.
China Eastern will raise a total of 7 billion yuan from the share sale as the government helps carriers struggling with rising debts and waning demand.
The airline, heading for its third annual loss in four years, has tumbled 85 percent in Hong Kong this year.
The airline dropped 8.5 percent to HK$1.18 (15 US cents) in Hong Kong, reversing earlier gains. In Shanghai, the carrier fell 3.7 percent to 4.49 yuan.
An analyst said the sale price suggests the shares have yet to decline further.
(Shanghai Daily December 31, 2008)
