China's airlines and foreign investment. Part 1: Cashed up - are foreign airlines targets now?

Never have investors been so willing to give airlines money. Chinese and global markets are resiling from the past year's over-optimism on China, but Chinese airlines are probably quietly pleased with themselves. Over four months, China's airlines intended to raise nearly USD10 billion in new share issues, excluding the IPOs earlier in 2015 from Juneyao and Spring Airlines. The airlines have said funds will largely be put towards aircraft purchases, but this is a mere formality and not a binding commitment.

It is surely a matter of time before Chinese airlines begin acquiring major foreign carriers. No other country has invested in as many foreign airlines as China has, but so far it is mostly in small operators, led by the HNA Group of Hainan Airlines. China's state-owned carriers have yet to partake outside greater China; but Delta's investment in China Eastern could indicate a warming to investments in the other direction. Strategic objectives - market access, foreign experience - will be the primary goals.