China Eastern Airlines Corp. expects to benefit from the introduction of a sales tax in Shanghai. The carrier believes it will be included in the new system, Board Secretary Luo Zhuping said today by phone.
China’s airlines and commodities companies, which would benefit from yuan gains that reduce the cost of their overseas purchases, may lead stock gains after the central bank signaled an end to the currency’s peg to the dollar.
The Bloomberg China-US 55 Index of the most-traded Chinese equities in the U.S. rose to a two-month high as airline profits grew and the government signaled it will move to shore up growth. Online search engine Baidu Inc. surged 7 percent in after-market hours trading after third-quarter profit topped analyst forecasts.
China Eastern Airlines Corp., the nation’s second-largest carrier, jumped the most in three weeks in Hong Kong trading after reporting a better-than-estimated 19- fold increase in first-quarter profit.