Hainan Airlines related stocks are suffering from a steep plunge in share prices as the market value of five A-share stocks and two H-share stocks dropped by 6.3 billion yuan (US$980 million) on Monday, Yicai.com reported.
According to calculations by Yicai.com, there are 15 public companies affiliated with Hainan Airlines, the largest civilian-run air transport company in China.
Eleven of them have the Hainan Cihang Charity Foundation act as their controller. As for Hainan Airlines Holding, the one with the largest market value — 55 billion yuan — its actual controller is the State-owned Assets Supervision and Administration Commission of Hainan provincial government.
The total market value of these 15 listed companies totals about 224 billion yuan.
Meanwhile, six other Hainan Airlines related stocks have suspended trading. It’s believed the controlling shareholders plans to conduct a major asset restructuring.