Transportation: Air China's shares fall
(Shanghai Daily)
Updated: 2006-08-18 18:24
Shares of Air China Ltd, the country's largest
international airline, dropped by almost 2 percent on its first day of trading
in Shanghai because of the concern that rising fuel costs will erode earnings.
Air China's stock fell by as much as 0.06 yuan (0.75 US cents) to 2.74
yuan, becoming the first stock to drop below the offer price since China allowed
domestic share sales to resume in May, Bloomberg said today.
The stock
changed hands at 2.80 yuan as of 11:29am local time. Air China, which reduced
its domestic share sales by 39 percent last week after institutions bid for
barely one third of the stock, was also the first company to cut its share
offering, reflecting investors' concerns over the stock's growth
potential.
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