Qatar Airways has bought 5% shares of China Southern Airlines Co., thus increasing the Chinese company’s value
Investments in China come in many ways and one of these is to buy the shares of the most promising Chinese companies. Is the case of Qatar Airways which, to increase its presence in China, has decided to buy 5% of shares of China Southern Airlines Co.
Qatar Airways is now the fourth largest shareholder in China Southern and the Chinese company’s shares have increased even after the Middle Eastern Gulf company showed interest in buying more in an attempt to strengthen its network in China.
With a total of 613.36 million shares in South China, including 430 million shares listed in Shanghai and 183 million in Hong Kong, Qatar Airways made a second deposit on Wednesday.
China Southern shares rose 4% in Shanghai on Thursday, the largest intra-day gain in a month.
The shares traded in Hong Kong increased by 1.9 percent. The operation of Qatar is part of a strategy of global operations that sees China as a fundamental corollary. Qatar Airways owns 20 percent of the owner of British Airways IAG SA, 10 percent of the South American carrier Latam Airlines Group SA and almost 10 percent of Cathay Pacific Airways Ltd. China is therefore essential.
As for the operations of China Southern, based in Guangzhou, one of the most recent operations is the conclusion of the alliance with SkyTeam and the new coach with Oneworld. China Southern is also in talks to form a joint venture with British Airways and enter into a code sharing agreement with Finnair Oyj, all of whom are members of Oneworld.
Qatar Airways may seek to increase its stake further in the next 12 months
“As China’s largest carrier, China Southern could be an ideal partner for Oneworld members to enhance their services to/from China,” Morgan Stanley analysts led by Edward Xu wrote in a note Wednesday.
Qatar Airways may seek to increase its stake further in the next 12 months, according to the filing by China Southern. The Chinese carrier’s top three shareholders are China Southern Air Holding Ltd., HKSCC (Nominees) Ltd. and Nan Lung Holding Ltd., according to its financial report.
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