Airline Shares Surge
By Winny Wang |
June 22, 2010, Tuesday
|
Print Edition
Print Edition
AIRLINE shares surged yesterday in anticipation that a possible yuan rise will help them save when they service their US dollar-denominated debts.
China Eastern Airlines, the country's second-largest carrier, will save about 300 million yuan (US$43.92 million) for every 1 percent rise in the value of the yuan versus the greenback, said Li Lei, an analyst at China Securities Co.
The Shanghai-based carrier's dollar-denominated debt is equivalent to 30 billion yuan, or 60 percent of its total debts, said Luo Zhuping, its board secretary.
"The appreciation of the yuan is definitely good news for airlines, and it will also boost domestic consumption, including air travel," Luo said. The carrier's shares rose 5.59 percent to 7.93 yuan yesterday in Shanghai.
The People's Bank of China said over the weekend that it will allow the yuan to be more flexible in its first comment since it began to hold the yuan at about 6.83 to the dollar in the middle of 2008.
Air China, the nation's flagship international carrier, has a US$7 billion debt which makes up 75 percent of its total debts, and it can gain about 477 million yuan for every 1 percent appreciation in the yuan. Shares in the carrier rose 6.44 percent to 11.73 yuan.
China Southern Airlines, the country's largest carrier, has a dollar-denominated debt equivalent to 52.5 billion yuan. If the yuan rises 1 percent the airline is set to make 500 million yuan in foreign exchange gains. Its shares rose 8.18 percent to 7.27 yuan.
China Eastern Airlines, the country's second-largest carrier, will save about 300 million yuan (US$43.92 million) for every 1 percent rise in the value of the yuan versus the greenback, said Li Lei, an analyst at China Securities Co.
The Shanghai-based carrier's dollar-denominated debt is equivalent to 30 billion yuan, or 60 percent of its total debts, said Luo Zhuping, its board secretary.
"The appreciation of the yuan is definitely good news for airlines, and it will also boost domestic consumption, including air travel," Luo said. The carrier's shares rose 5.59 percent to 7.93 yuan yesterday in Shanghai.
The People's Bank of China said over the weekend that it will allow the yuan to be more flexible in its first comment since it began to hold the yuan at about 6.83 to the dollar in the middle of 2008.
Air China, the nation's flagship international carrier, has a US$7 billion debt which makes up 75 percent of its total debts, and it can gain about 477 million yuan for every 1 percent appreciation in the yuan. Shares in the carrier rose 6.44 percent to 11.73 yuan.
China Southern Airlines, the country's largest carrier, has a dollar-denominated debt equivalent to 52.5 billion yuan. If the yuan rises 1 percent the airline is set to make 500 million yuan in foreign exchange gains. Its shares rose 8.18 percent to 7.27 yuan.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
