Advertisement

Citic's priority should be to calm the troops

Reading Time:2 minutes
Why you can trust SCMP

Citic Pacific needs to work fast on its investor relations to ensure uncertainty over group strategy does not translate into a slide in the mainland investor's stock market rating.

Advertisement

In the wake of Citic Pacific brokering a re-shuffle in Hong Kong's aviation industry, investors are left uncertain where the company's investment priorities now lie.

Citic Pacific has cut its stake in Dragonair from 46 per cent to 25 per cent in the reshuffle.

In the deal, China National Aviation Corp has bought 35.86 per cent of the fledgling airline.

At Cathay Pacific, Citic Pacific has raised its stake in the international carrier to 25 per cent from 10 per cent.

Advertisement

Meanwhile, Swire Pacific has seen its holding in Cathay reduced from 52 per cent to 44 per cent.

Advertisement