Shanghai Daily news

Shanghai Airlines Co, the smaller of the city's two carriers, has scrapped a plan to raise as much as 600 million yuan (US$72 million) selling additional shares, citing a plunge on the domestic stock markets.
The company halted the sale of 150 million local-currency shares to protect investors' interests, according to a filing to the Shanghai Stock Exchange yesterday.
The airline had originally planned to use the proceeds to fund the purchase of nine Boeing 787 planes, according to earlier statements.
"It doesn't mean we will give up the fundraising plan forever," said Xu Junmin, board secretary of the locally listed carrier. "We just think that it may be not a right time to float shares now."
He added the carrier will wait for the right time to raise capital to fund its fleet expansion, including additional shares float or bonds sale.
Xu also added, however, that if they fail to see favorable conditions for financing from the capital markets, the carrier will use bank loans.
An industry analyst also attributed the airline's move to suspend its share sale to the depressed stock markets.
"The recent poor performance of the share markets did dent the company's confidence in its fundraising plan," said Deng Hongmei, an analyst with Everbright Securities Co Ltd.
China's stock markets have repeatedly fallen to six-year lows after the government in April started to dispose of state holdings. The disposal of the non-tradable shares on a trial basis has fuelled concerns of a liquidity drain as the markets would be swamped with new stocks.
The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, plummeted 2.59 percent to 1,070.84 yesterday, extending a 15 percent drop this year.
Shares of Shanghai Airlines edged 0.48 percent down at 4.17 yuan after plunging nearly 40 percent this year.