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China Eastern Airlines will receive a capital raise of $4.6 billion

BEIJING (Reuters) – China Eastern Airlines stated that the company will receive a cash injection of 31 billion yuan ($4.60 billion) from four new investors as part of a stock diversification plan.

China Life Investment Holding Limited, a subsidiary of state-owned China Life Insurance Co., will inject 11 billion yuan to the airline, while Shanghai Jiushi Group, another state-owned company, will inject 10 billion yuan, according to the public filing.

China Reform Holding Corporation and China Tourism Group, both state-owned, will also inject 5 billion yuan each.

This step is a part of the China’s long-term efforts to diversify ownership structures among state-owned enterprises and comes at a critical time after “Eastern China” recorded a net loss of 8.5 billion yuan in the first half due to the COVID-19 pandemic.

Also, the company announced last year that it would receive a capital injection of 30 billion yuan from three investors.

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