In response, Xu Hanzhong, an independent non-executive director of Air China, responded in an interview with the newspaper: Impossible. Air China has no acquisition of Cathay Pacific agenda.
I strongly believe that although mainland companies are now participating in different forms (to Hong Kongs economy), this does not mean replacing anyone. Xu stressed, As far as I know, I dont think its on the agenda. No way.
According to Air Chinas official website, Xu Hanzhong joined Cathay Pacific Airlines in 1975 as the managing director of Hong Kong and overseas, and from 1990 to 1992 as the general manager of Cathay Pacific Dragon Airlinesplanning and international affairs, and in 1992 as the chief representative of Taigu (China) in Beijing. From February 2007 to July 2014, Xu Hanzhong was appointed Chief Executive of the Hong Kong Airport Authority.
Xu Hanzhong is currently a member of the 13th CPPCC National Committee and a member of the Council of the Hong Kong General Chamber of Commerce. He was appointed as a gentleman of peace by the Chief Executive of the Hong Kong Special Administrative Region in July 2006.
Air Chinas ownership structure in Cathay Pacific can be traced back to 2006. At that time, the equity trading scheme between Cathay Pacific, Air China and Hong Kong Dragon Airlines was finalized. Hong Kong Dragon will become a wholly owned subsidiary of Cathay Pacific, while Air China and Cathay Pacific will become the second largest shareholders through cross-shareholding.
After the restructuring of the tripartite ownership, Taigu Group currently owns 45% of Cathay Pacific, the largest shareholder of the latter. Air China holds 29.99% of Cathay Pacific, which is limited. Cathay Pacific owns 18.13% of Air China.
In addition, according to the Hong Kong Code of Mergers and Acquisitions and the Acquisition Code, when the existing shareholders hold less than 30% of the shares and subsequently increase their shareholdings to 30% or more, the notification of the shareholderscomprehensive acquisition offer to the company is triggered.
In short, once Air China increases its share of Cathay Pacific, even 0.01%, it will propose a mandatory comprehensive acquisition agreement to Cathay Pacific.
Air China responded to this restriction in March 2018. Zhou Feng, then the Secretary of Air China, said in an interview with First Finance and Economics at that time, We do not want to break through this boundary at present, at least we do not have this consideration at present.
In July this year, the State Council just launched 11 measures for opening up the financial industry. According to Xinhua News, Hong Kong financial circles believe that these measures can bring win-win results to the financial markets in the mainland and abroad, and create favorable conditions for overseas financial institutions to further develop the Chinese market and share the dividends of Chinas economic development. As an important bridge between the international financial centre and the two-way opening of the country, Hong Kong will play a more prominent role as a pilot field in the opening of the national finance. Hong Kongs financial institutions and talents are looking forward to better integrating into the overall situation of the countrys development.
This year has fallen 22.81% since its high.
In recent years, under the leadership of Archaean, Cathay Pacific storms continue. Since 2008, Cathay Pacific executives have repeatedly hedged fuel under false judgment, causing the company to lose up to HK$25.6 billion (about 23.267 billion yuan) in five years, the most serious year-on-year loss since Cathay Pacific was founded in 1946.
Cathay Pacific was also kicked out of the blue-chip ranks by the Hang Seng Index in 2017.
Then Cathay Pacific began a major restructuring plan for up to three years, involving customers, operations, business and personnel management, restructuring, redefining the scope of responsibility and so on.
The recombination effect is remarkable. In March this year, Cathay Pacific released its annual performance report for 2018. Last year, its annual operating income was HK$111.6 billion (about 10.939 billion RMB), up 14.2% from the previous year, and its profit reached HK$2.345 billion (about 2.131 billion RMB). Compared with the loss of HK$575 million in 2016 and HK$1.259 billion in 2017, Cathay Pacific made a profit of HK$2.345 billion. The airline finally turned a profit.
On July 26, Cathay Pacific Airlines Association instigated a demonstration in the terminal of Hong Kong Airport.
On August 7, several netizens reported that Cathay Pacific employees had leaked information about their flight itineraries on the Internet in an attempt to harass the police.
On August 27, Cathay Pacifics oxygen cylinders were exhausted from two passenger planes parked at Toronto Airport.
On August 30, another Cathay Pacific passenger planes oxygen cylinder was exhausted.
Cathay Pacific was warned by the Civil Aviation Administration of China on August 9 because of exposure of employees involved in violent incidents and malicious leaks of passenger information. On September 5, Cathay Pacific Airlines Chairman Shi Leshan also announced his resignation and admitted that Cathay Pacific had recently encountered the most extraordinary and challenging period.
On the market side, Cathay Pacific Airlines (00293.HK) shares plunged 22.81% from their April high of HK$13.92. Cathay Pacific closed down 0.19% today at HK$10.42 per share.
Source: Observer Network Responsible Editor: Yang Bin_NF4368