Chinese airlines fly high with A-share placements

More Chinese airlines taxi down the runway in search of fresh equity to reduce high leverage and finance expansion.
Raising paper from mainland equity markets
Raising paper from mainland equity markets

A group of Chinese airlines have announced plans to tap the A-share market for fresh capital as the sector seeks to reduce its high leverage and finance expansion during a period of low oil prices and growing traffic volumes.

Since the end of June, Air China, Spring Airlines and Juneyao Airlines have all announced plans to raise equity finance, joining China Eastern and Hainan Airlines, which executed private placements in April.

Should all the deals be completed, the five will raise a combined total of Rmb59 billion $9.5 billion. The only major airline yet to flag a deal is China Southern, although analysts believe an announcement...

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