Air China could be bundled in CNAC listing
23 August 2004
China National Aviation Corp's plan for a separate Air China listing in Hong Kong may reportedly be scrapped, as the company considers creating a new CNAC holding that would include Air China � a suggestion that would create an entity with a higher valuation and avoid conflict with Hong Kong listing rules that bar a parent company and a listed affiliate from competing with one another. Listing sponsors Merrill Lynch and China International Capital Corp reportedly suggested the workaround that would create a holding company comprised of stakes in Air China and Hong Kong-listed China National Aviation Co (CNAC). Air China parent CNAC holds a 43% stake in Dragonair, which competes with Air China on some mainland routes. Air China has already been cleared by mainland regulators to list overseas.