China Southern Airlines lower in Hong Kong after resuming trade
Hong Kong (XFN-ASIA) - China Southern Airlines Co Ltd was lower
in Hong Kong in line with other China stocks after resuming trade, despite the
carrier's 49 pct surge in third-quarter net profit.
The stock was down 0.32 hkd or 2.75 pct at 11.3, after gaining 4.5 pct yesterday.
The Hang Seng China Enterprises index was down 323.99 points or 1.65 pct at 19,263.89 as investors locked in profits in many H-shares amid expectations that China will announce new tightening measures, including an interest rate hike, after latest economic data.
China announced today that its economy grew 11.5 pct in the third quarter as well as in the nine months to September.
China Southern sought trading suspension in the morning to give sufficient time for investors to review the company's third-quarter results.
The mainland carrier announced late yesterday that its third-quarter net profit rose to 1.88 bln yuan from 1.26 bln a year earlier, on higher passenger numbers.
For the nine months to September the net profit stood at 2.183 bln yuan, a huge jump from the 407 mln achieved in the corresponding period last year.
China Southern also announced earlier this week that it will acquire 10 new aircraft by 2010 as part of a plan to expand its overseas routes.
Among other mainland airlines, Air China was down 0.14 hkd or 1.19 pct at 11.62, while China Eastern Airlines was up 0.2 hkd or 2.41 pct at 8.51 after reporting strong passenger numbers for September.