China Eastern shares decline on selling spree by investors

SHANGHAI: Shares of China Eastern Airlines Corp tumbled to their daily downward limit yesterday after 1.406 billion new shares became tradeable.

China Eastern completed its takeover of local rival Shanghai Airlines Co on Jan 28 by issuing a total of 1.695 billion tradeable shares. Among them, 1.406 billion shares entered trading yesterday, and another 288.9 million new shares will become tradeable on June 25, 2012, according to a statement from the carrier.

Shanghai Airlines' shares closed at 7.27 yuan apiece on Jan 11, its last trading day before being delisted. The cost for Shanghai Airlines' shareholders to swap to China Eastern shares was 5.59 yuan per share, according to the 1:1.3 share swap ratio.