China eases investment ruling

China eases investment ruling

BEIJING: China is to raise the foreign ownership limit for
domestic airlines to 49 percent from 35 percent in an attempt to
attract more overseas investment to the industry, officials said
Tuesday.

The new regulations, which will take effect from Aug. 1, will
allow foreign companies to buy shares and directly invest in
airlines, said a spokesman for the Civil Aviation Administration
of China.

Previously, foreign investors were only allowed to set up
joint ventures and partnerships.

The new rules will also allow foreigners for the first time to
hold the posts of president or chief executive of domestic
airlines.

However each foreign investor is limited to a maximum 25
percent stake, and the Chinese partner must always hold a
majority, said the spokesman, who gave his name as Ma. -- AFP