Chinese airlines slump, Taiwan carriers jump. SIA Cargo buys into China Cargo Airlines
Mainland Chinese airline stocks slumped yesterday as the Shanghai Stock Market fell on concerns about rising tensions on the Korean Peninsula.
Hainan Airlines led the retreat, slumping 4.7%, while China Eastern and China Southern fell 4.0% and 3.6%, respectively. Air China fell 1%.
Across the Taiwan Strait, China Airlines and EVA Air gained 1.9% and 3.9%, respectively, as the local government stated it may raise the daily limit for tourist arrivals from the Mainland from 3000 to 4000, possibly from 01-Jan-2011, according to an Economic Daily News report.
Singapore Airlines gained 0.7% yesterday as its cargo unit, SIA Cargo, announced plans to acquire 16% of Shanghai-based China Cargo Airlines, subject to regulatory and other approvals.
See related report: Singapore Airlines heads back to China: Cargo unit acquires stake in China Eastern's cargo venture
Asia Pacific selected airlines daily share price movements (% change): 20-Dec-2010
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times