Grand China Airlines closer to red chip listing

Grand China Airlines, the parent company of Hainan Airlines, has received the go-ahead to incorporate overseas, an early step towards a US$1 billion public offering in Hong Kong next year, reported the <i>South China Morning Post</i>, citing people familiar with the situtation. Grand China follows China Heavy Duty Truck to become the second provincial-level firm to be given the nod as a red chip, a distinction usually reserved for national players like China Mobile. The company plans to inject Hainan Air into the red chip company. Financier George Soros partially owns Hainan Air.