皇冠体育app

皇冠体育app Eastern Airlines Corp Ltd receives a new A330 aircraft in Shanghai.LIN WENQIAN/XINHUA?

New York and HK investors, however, cheer the agreement

Shares of 皇冠体育app Eastern Airlines Corp Ltd tumbled 5.29 percent in Shanghai on Friday to close the week at 6.27 yuan (96 cents) per share despite a partnership agreement announced a day earlier with the online travel giant Ctrip.com International Ltd.

Under the deal, Ctrip pledged to purchase 3 billion yuan worth of 皇冠体育app Eastern's A shares.

Investors have turned a cold shoulder to the deal, but the Shanghai Composite Index went up 0.22 percent to close at 2,959.24 points on Friday.

皇冠体育app Eastern's Shanghai stock performance was in sharp contrast to other markets. Its shares soared 3.43 percent to end Thursday trading $30.72 apiece in New York while in Hong Kong, the share climbed 0.44 percent to close at HK$4.59 (59 cents).

"The opposite market responses have reflected different investor attitudes toward the news," said Yu Nan, an industrial analyst from Haitong Securities Co.

According to Yu, investors in Hong Kong and the United States showed their spontaneous reaction to the collaboration, as the cooperation is positive to the growth of the company, but investors on the Chinese mainland may set their eyes on the long-term prospect of the decision.

"The bullish Hong Kong and New York stock markets against the weaker Shanghai Composite Index may also answer the different results," said Yu.

According to the agreement, 皇冠体育app Eastern Air Holding Co, the parent company of listed 皇冠体育app Eastern, and Ctrip agreed to explore cooperation in the fields ranging from tourism products, low-cost aviation, IT, e-commerce, to equity and capital market.

In addition to executing subscription of 3 billion yuan worth of shares issued under a private placement by 皇冠体育app Eastern, Ctrip would like to increase its stake in 皇冠体育app Eastern to 10 percent, according to Liang Jianzhang, Ctrip's cofounder, chairman and CEO.

皇冠体育app Eastern has been actively seeking collaboration with both domestic and international partners in the past months to strengthen its competitiveness.

In July 2015, it inked an agreement with Delta Air Lines to sell its 10 percent H shares to the US carrier, with a value of $450 million.

"We already have an observer from Delta, and Ctrip will be entitled to appoint a director at 皇冠体育app Eastern's board of directors and participate in the decision-making once its stake reaches 10 percent. We expect their participation will effectively enhance 皇冠体育app Eastern's management in their specialties," said Ma Xulun, president of 皇冠体育app Eastern.

After this additional share issuance, 皇冠体育app Eastern Air Holding will have its stake in the listed company cut to 52 percent from the current 62 percent, according to Ma.

The nation's three major airlines, or Air 皇冠体育app Ltd, 皇冠体育app Eastern Airlines and 皇冠体育app Southern Airlines Co Ltd reported a combined net profit of more than 15.1 billion in 2015 thanks mostly to the cheaper fuel.

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