China Eastern gets approval for share placement

HONG KONG, Nov 30 (Reuters) - China Eastern Airlines (0670.HK: Quote, Profile, Research) (600115.SS: Quote, Profile, Research), the country's third-most valuable airline, said late on Sunday it had won regulatory approval for a share placement.

The share issue would push China Eastern, one of China's three major carriers, closer to a state-backed merger with smaller rival Shanghai Airlines 600591.SS, which is set to be completed by the end of the year. [ID:nSHA322480].

China Eastern's proposed issue of not more than 490 million new Hong Kong-listed H shares at 1 yuan ($0.147) per share to CES Global had been approved by the China Securities Regulatory Commission, the firm said in a statement to the stock exchange.

China's airlines faced strong headwinds last year as a slowing economy hit demand for air travel, pushing the three biggest carriers into a combined loss of more than $4 billion and prompting Beijing to provide big cash infusions to some firms.

But domestic air traffic in China has resumed its normal growth pattern this year as Beijing's aggressive economic stimulus lifted consumer confidence.

(Reporting by Sui-Lee Wee, Editing by Jonathan Hopfner) ((suilee.wee@thomsonreuters.com; +852 2843 6314; Reuters Messaging: suilee.wee.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) ($1=6.825 Yuan)