AVIC International Jumps Most in Six Years as Li BuysKyunghee Park
Shares of AVIC International Holding Ltd., a unit of plane maker Aviation Industry Corp. of China, jumped the most in more than six years in Hong Kong trading after the city-state’s richest man, Li Ka-shing, bought a stake in the company.
AVIC International shares advanced as much as 44 percent, their biggest intraday gain since October 2008, to HK$0.89 and traded at HK$0.81 as of 9:47 a.m. in Hong Kong. Li bought 450 million shares of AVIC International -- a 9.74 percent stake in the company -- at an average price of HK$0.60 apiece, according to a filing yesterday.
Last month, Li’s Cheung Kong Holdings Ltd. agreed to pay $1.89 billion to buy 45 planes from companies including General Electric Co.’s aviation services unit to enter the aircraft leasing business. Li is entering the plane-leasing market just as increasing urbanization and a growing middle class fuel a surge in travel demand across Asia, the world’s most populous continent.
AVIC International trades aircraft, including turboprops, airplane parts and helicopters worldwide, according to its website.