Shanghai Airlines denies cash injection report

By Winny Wang  |   2008-12-8  |     ONLINE EDITION

SHANGHAI Airlines denied today that it would receive financial support from the local assets regulator, its biggest shareholder.

"The State-owned Assets Supervision and Administration Commission of Shanghai did not inject any cash into the company," the country's fifth-largest carrier said in a statement to the Shanghai Stock Exchange today.

The statement was made after the 21th Century Business Herald reported last week that the local government was considering an injection to help ease its financial difficulties.

The newspaper indicated that the injection would be a part of the city government's plan to merge Shanghai Airlines and China Eastern Airlines.

The carrier also said it has not negotiated with other investors that may have affected the company's share price.

China will offer financial aid worth 54.78 billion yuan (US$ billion) to companies directly controlled by the central government to help them counter a global financial crisis.

Previously, China Southern Airlines Co secured 3 billion yuan from the central government.

Shanghai-based China Eastern said it applied for a capital injection from the government to reduce its asset-liability ratio.