Investors give thumbs up to merger proposal

SHANGHAI: The price surge of China Eastern and Shanghai Airlines shares in a lackluster market yesterday showed that the merger of the two Shanghai-based carriers has won investors' support.

Trading in the shares of the China Eastern in Hong Kong and Shanghai and Shanghai Airlines in Shanghai resumed yesterday after they announced terms of the merger late Sunday evening. The disclosure helped clear weeks of uncertainties when the two ailing carriers were trying to hammer out a merger that could catapult them into dominant position in Shanghai, which is fast building up to be a regional air traffic hub.

Trading in shares of both companies were suspended from June 8.