China Eastern Stocks Fall after Share Sale is Expanded to RMB7 Billion

Dec. 30 – Shares of China Eastern, the nation’s third-largest carrier, dropped 3.9 percent in Hong Kong trading after expanding a discounted sale of new shares to its parent.

According to Bloomberg News, the airline fell to HK$1.24 in this morning, after declining as much as 6.2 percent and gaining as much as 4.7 percent. The stock last traded on Dec. 24.

The volatility follows the carrier’s announcement on Monday that it plans to raise RMB7 billion by issuing more A and H shares to its holding company, China Eastern Air Holding Company.

The company said in its statement to the Shanghai stock Exchange yesterday that it had revised its original plan, which targeted a RMB3 billion capital injection.

In Shanghai, the carrier rose 1.7 percent to RMB4.74, after swinging between gains and losses.

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