China to raise jet fuel prices and interest rates; airline shares fall
China's National Development and Reform Commission stated it would raise retail jet fuel, gasoline and diesel prices on 07-Apr-2011.
The cost of jet fuel will be raised by CNY500 (USD76.34) to CNY6,840 (USD1,045) while gasoline prices will be increased by CNY500 (USD76.34) and diesel by CNY400. China last raised fuel prices by as much as 4.6% on 20-Feb-2011.
Meanwhile, the People's Bank of China this week raised interest rates, the fourth increase since the end of the global financial crisis. The benchmark one-year lending rate increased from 6.06% to 6.31%. The one-year deposit rate rose from 3% to 3.25%.
Chinese airline shares were weaker yesterday, led by Shandong Airlines (-7.8%), China Southern (-3.6%) and China Eastern (-2.4%).
Selected Asia Pacific airlines daily share price movements (% change): 6-Apr-2011
