Hainan Airlines Co., Ltd, in which U.S. financier George Soros is the largest shareholder, said it plans to raise a total of US$301 million by selling more shares to finance aircraft purchases and airport construction.

Haikou, southern China-based Hainan Air said in a statement it plans to sell RMB1.5 billion (US$181 million) of A shares to domestic investors and US$120 million of B shares to foreigners. It will ask shareholders to approve the proposed stock sales at a special meeting on August 19.

Hainan Air will use the proceeds mainly to buy three Boeing Co. 767-300 and five Boeing 737-800 planes. It will also borrow from banks to help fund the purchases, Hainan Air said, without specifying.

Hainan Air said the new purchases would boost competitiveness and allow it to open new international and domestic routes. Hainan Air will also spend RMB295 million on the second- phase construction of Meilan Airport, which is 30 percent owned by Hainan Air.

(Eastday.com.cn 07/19/2001)