News for China Southern Airlines Company
Mar 12 · 1:57:00 PM · Source: Centre for Asia Pacific Aviation
China Southern Airlines’ (NYSE:ZNH) shares soared 7.1% in Hong Kong to their highest level since Jun-2008 (as trading resumed after a two-week suspension), following the carrier's announcement of a much bigger than expected capital raising plan – supported by Beijing – to help it improve its balance sheet, according to the Centre for Asia Pacific Aviation. Clearly a return to profitability in 2009 and soaring rates of traffic growth in 2010 were not enough. Beijing is again dipping deeply into its pockets to support the “big three” airlines following a flawed industry consolidation programme and massive debt-fuelled expansion last decade, as well as natural disasters and wrong-way bets on derivatives in 2008 and the global economic morass of 2009.
HSBC Securities raised its rating on China Southern from “underweight” to “overweight”. Beijing is clearly keen to improve the balance sheets of its big three airlines, as the Chinese economy gets back into stride in 2010. But it is not good news for rival private airlines – and it will probably not help the "big three" over the long run. As Beijing sends around the rescue boat every few years, the state-owned carriers lack any real incentive to become efficient.
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by Steve Wieczorek
Mar 8 · 3:28:00 PM · Source: TradingMarkets.com
China Southern Airlines Co., (NYSE:ZNH) the country's largest carrier, said it planned to raise no more than 10.75 billion yuan (1.57 billion U.S. dollars) through private issue of Shanghai and Hong Kong-listed shares, according to TradingMarkets.com.
The sale of shares was to improve the company's capacities to cope with possible risks, according to company's statement filed to the Shanghai Stock Exchange Monday.
No more than 10 billion yuan of A shares would be raised through the private issue, according to the company. The A shares would be issued at not less than 5.66 yuan per share and the H shares at not less than 2.73 HK dollars.
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by Steve Wieczorek
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