Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Cathay Pacific in discussion to take up a stake in Hong Kong Express Airways

Cathay made the statement on Tuesday in a response to media reports speculating on the deal.

Hong Kong airline group Cathay Pacific Airways is in talks to buy a stake in Hong Kong Express Airways from Chinese firm HNA Group.

Cathay made the statement on Tuesday in a response to media reports speculating on the deal. It added that it would issue an additional statement when the time is appropriate. The airline managed expectations to state that there can be no certainty that any agreement will be entered upon.

Speculation on an interest from Cathay to take up minority stakes in HNA’s Hong Kong Express and Hong Kong Airlines surfaced last month in media reports. In that same month, Cathay had flagged that its 2018 annual profit would double the amount expected by analysts, sending its shares surging by more than 7.5%.

Cathay is scheduled to release its earnings results on March 13th, ending its two-year run of losses.

In the latest statement, Cathay did not specify if Hong Kong Airlines is part of the discussions.

Cathay eyes ballooning budget airlines industry

Chinese conglomerate HNA Group has businesses in various industries including aviation, real estate, and financial services. The group is in the process of cooling down from its US$50 billion buying spree which is now causing it rising debts and scrutiny for its aggressive deal-making.

The purchase of a stake in HNA’s Hong Kong Express would give Cathay a step into the budget airline industry and help it compete with other competitors who are participating in the budget airlines business.

The budget airline industry in Asia is fast ballooning as a higher standard of living and lifestyle is adding new Asian travellers every year. Last year, low cost carriers accounted for close to 55% of all seats within Southeast Asia and more than 60% in South Asia.

Hong Kong Express flies to cities in countries including China, Japan, Vietnam, and South Korea.

Cathay’s shares rose 3.23% by mid-afternoon, higher by HK$0.42, at HK$13.44.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.