Eastern Airlines ' 2% Morgan Stanley stock shares

To finalize the exchange of shares and the merger of Shanghai Airlines (600591-CN) and plan to finance the shares of the Eastern Airlines, which have been built up after the replenishment of liquidity, H shares rose slightly this morning, with shares now up 1.68% to HK $1.82 and 12.45 million shares.　　Morgan Stanley's latest report said it had downgraded the unit to neutral by reducing its target price from HK $0.8 to HK $1.7, which was still at a discount of 7% per cent. According to Morgan Stanley, China Eastern Airlines is expected to benefit greatly from a A-share (RMB 5.6) premium over the H-shares (HK $1.79), given that it will solve most of the new capital injection problems and the merger of St on the mainland by issuing a-share financing. At the same time, further capital injections will return a positive return on the book value per share of Eastern Airlines. Morgan Stanley said that although the extent of the potential synergies after the merger remained uncertain, it believed that Eastern airlines would benefit from the following: Consolidating the foundation in Shanghai and more efficient networks.