Boe­ing sees big ex­pan­sion CNPC mulls small-cap in long-haul air mar­ket oil­field ser­vices list­ing

Firm says na­tion may be­come first $1 tril­lion Move dove­tails with pos­si­ble plans to plus avi­a­tion mar­ket turn firm into strate­gic hold­ing com­pany

China Daily (USA) - - BUSINESS - By ZHU WENQIAN zhuwen­qian@chi­nadaily.com.cn By BLOOMBERG

Boe­ing Co said on Tues­day that China China Na­tion­alis now Petroleumthe most Corp, dy­namic the mar­ket coun­try’sfor in­ter­na­tional big­gest oil and flights, gas and pro­ducer,it is very pos­i­tive may use abouta small-capthe out­look com­pa­ny­for the called growth Daqin­gof China’s Huake long-haulCo as a ve­hi­cle mar­ket, dueto listto stron­gits oil­field do­mes­tic ser­vices and over­sea­sunit and travel avoid de­mand,an ini­tial and a pub­lic ris­ing mid­dle of­fer­ing, class. ac­cord­ing Theto sources.plane man­u­fac­turer lifted CNPC,its which fore­cast owns­for China, about 55 and per­cent­said the of na­tion Daqingis likely Huaketo through­be­come the two first sub­sidiaries,coun­try with is al­soan avi­a­tion con­sid­er­ing mar­ket us­ing ex­ceed­ing the Shen­zhen-listed$1 tril­lion in the next com­pa­nytwo decades. for its Chi­nese equip­ment-makingair­lines are es­ti­mated unit, said to the pur­chase peo­ple. There6,810 is air­planesno time­line val­ued fo­rat $1.025the pos­si­bletril­lion in list­ing,the next they20 years. said. Daqing Among Huake the board new de­liv­er­ies, sec­re­tary Meng Boe­ing Fanli pre­dicts and thata Bei­jing­basedChina will need spokesman5,110 news­in­gle-aisleat CNPC air­planes through 2035, ac­count­ing for 75 per­cent of the to­tal, and China’s wide­body fleet is to triple in size over the next two decades.

“As China tran­si­tions to a more con­sumer-based econ­omy, avi­a­tion will play a key role in its eco­nomic de­vel­op­ment,” saidRandyTin­seth,sep­a­rately de­clined vice-pres­i­dent to com­ment.of mar­ket­ing at Boe­ing Com­mer­cialDaqing Huake Air­planes. rose as much “Be­causeas 8.6 travel per­cent,and trans­porta­tion the big­gest in­tra­da­yare key ser­vices, ad­vance we in ex­pect­three to months,see pas­sen­ger be­fore traf­fic par­ing grow its 6.4 gain per­centto trade an­nu­al­lyup 3.7in China per­cent overat 26.44the next yuan20 years.” ($4.01) at Mean­while,10:08 lo­cal low-cost­time. The car­ri­ers CSI 300 and In­dex full-ser­viceof some of air­lines China’s have largest been com­pa­niesadding air­planes­listed in and Shang­hai ex­pand­ing and new Shen­zhen­point-to­point slipped ser­vices0.2 per­cent. be­tween smaller CNPC cities an­nouncedto cater for so-called­both leisure back­door and list­ings busi­ness ear­lier travel this de­mandyear to in­ject from its a ris­ing en­gi­neer­ing­mid­dle clas­sunit in into China Xin­jian­gand through­out Dushanzi Asia. Tianli High & New Tech Co and In fi­nan­cialthe last busi­ness­five years, as­set­s­the num­berof­such as Kun­lun di­rect in­ter­na­tion­alTrust Co and flights Kun­lun to Fi­nan­cia­land from Leas­ingChina saw Co a into surge Shan­dong-basedof 150 per­cent. Di­rect Ji­nan flights Diesel En­gine be­tween Co. sec­ond-tier Chi­nese cities and over­seas Randy Tin­seth, cities CNPC have would­been the be main the driv­ing last among force of China’sthe growth.big three State-runTin­seth saidoil the com­pa­nies con­tin­u­ing to ex­pan­sion­list its oil­fieldof China’s ser­vices mid­dle unit. class, China Petro­chem­i­cal­cou­pled with Corp­new re­laxed merged vi­saits oil­field poli­cies ser­vice­sand a wide as­sets range into of small­er­wide body listedair­planes unit Sinopecwith new Yizheng tech­nolo­gies, Chem­i­cal ca­pa­bil­i­tiesFi­bre Co andin 2014. ef­fi­cien­cies, gives CNOOC Boe­ing Ltd, suf­fi­cient­the coun­try’srea­son to big­gest ex­pect off­shorea very bright pro­ducer,fu­ture for took China’s China long-haul Oil­field mar­ket. Ser­vices Ltd Li pub­lic Xiao­jin, in a pro­fes­sor2002. at the Civil CNPC Avi­a­tion Chair­man Univer­sity Wan­gof Chi­naYilin in said Tian­jin,in Fe­bru­ary­said China theis ex­pected to have a surge on in­ter­na­tional travel vol­ume. By 2020, China is likely to wit­ness 200 mil­lion in­ter­na­tional trips com­pany an­nu­ally. plans to spin off and “The list tren­dits of oil­field-ser­vice­sair­lines to add more busi­ness. in­ter­na­tion­alThe list­ing flights dove­tails be­tween with first-tier plans Chi­ne­seto pos­si­blyc­i­ties trans­for­mand sec­ond-tierthe en­ergy for­eign gi­antc­i­ties, into and a vice-versa, strate­gic is hold­ing­likely to con­tinue com­pany to that grow won’t rapidly, man­a­gesince the day-to-day­di­rect flights op­er­a­tions be­tween­first­tierof its sub­sidiaries.cities are nearly sat­u­rated, and A back­do­orde­mand is list­ing keeps is grow­ing.”a way to take a com­pany pub­lic with­outOn the an other IPO hand,by mov­ing­driven by as­sets China’s into growingan al­ready-list­ede-com­merce stock. busi­ness Wait­ing— al­ready times the in largest China in for thea world tra­di­tional— air cargo list­ing is can ex­pect­edbe moreto be­come than a fourkey driveryears af­ter­for the a com­pany con­tin­u­ous files growthan ap­pli­ca­tion,of avi­a­tion basedin China,on the with es­ti­mat­edthe need num­ber­for 180of deal­snew freightersper year and and the 410 size con­vertedof the freighters.back­log.

In The the Chi­na­past five Se­cu­ri­tiesyears, the ex­press Reg­u­la­tory de­liv­ery Com­mis­sion­ser­vices saw an this av­er­ageyear an­nu­al­has ap­proved­growth rate 98 in IPOs their out to­talof vol­ume844 ap­pli­ca­tion­sof 55 per­cent, it pro­cessedand sales rev­enue­sas of Sept grew 1, by ac­cordingan an­nu­alto data av­er­age from of the39 per­cent, com­mis­sion. ac­cord­ing to the State Post Bureau.

XCNPC would be We ex­pect to see the last among China’s pas­sen­ger traf­fic big three Staterun grow 6.4 per­cent oil com­pa­nies an­nu­ally in China.” to list its oil­field

vice-pres­i­dent of ser­vices unit. mar­ket­ing at Boe­ing Com­mer­cial Air­planes

REUTERS XIN­HUA

A Boe­ing em­ployee uses a lift to get a view of an 787 en­gine dur­ing a me­dia pre­sen­ta­tion at Boe­ing’s site in Everett. An em­ployee of China Na­tional Pe­tro­leum Corp works at the com­pany’s site in Hu­atu­gou, Qing­hai province.

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