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China Eastern to get another 10bn yuan
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On December 18, Securities Daily learned from an insider who is close to China Eastern Airline's senior management that China Eastern Airlines Corporation Limited and its new President and General Manager, Liu Shaoyong may receive a further injection of 10bn yuan from the Finance Ministry.

The insider told Securities Daily that since Liu assumed office this Monday, China Eastern has been discussing whether to apply to the Finance Ministry and the State-owned Assets Supervision and Administration Commission for a further 10 bn yuan subsidy.

The Securities Daily reporter called Luo Zhuping, Secretary to the Board and a Director of China Eastern, on December 18. Luo did not deny the rumor that their company will get another capital injection, but he said he did not know whether the amount would total 10 bn yuan.

"The Finance Ministry is injecting more capital in China Eastern to speed up its restructuring," a Morgan Stanley analyst noted.

But a Central University of Finance and Economics teacher did not agree, "The second infusion of funds will provide China Eastern with more cash to enable it to pay for its fuel-hedging losses, and more importantly additional working capital to help it get through what will be a rough winter for the world airline industry."

For more details, please read the full story in Chinese

http://zqrb.ccstock.cc/html/2008-12/19/content_155099.htm

(China.org.cn December 19, 2008)

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