State carrier Air China and China Southern Airlines dismissed media speculation about a merger on Thursday, saying that there is no information to be disclosed regarding such merger.
In separate statements to the Hong Kong Exchanges and Clearing, Air China and China Southern said neither the companies nor their controlling shareholders have received any information, written or verbal, from any government authority concerning reports saying the two airlines are considering reorganization through merging.
Media reports surfaced on Thursday suggesting Air China and China Southern could be merged as China continues to consolidate its bloated State-owned conglomerates to improve competitiveness.
The airlines said in the statements that there is no information to be disclosed in that regard.
The possible merger was reported by Shanghai Securities News, citing "market talk". The Shanghai Securities News is owned by the official Xinhua News Agency.
The government has said it wants to develop innovative, globally competitive conglomerates, capable of exporting Chinese know-how and high-end manufacturing.
Restructuring of central government-controlled industrial conglomerates is handled directly by the State-owned Assets Supervision and Administration Commission.
China Southern closed at 8.97 yuan ($1.41) Thursday, an increase of 10.1 percent from the closing price Wednesday. Air China closed at 9.46 yuan, an increase of 10 percent.
