On the afternoon of December 16, China Merchants Bank (CMB) and Hainan Airlines (HNA) signed an agreement on strategic cooperation. Under the agreement, a strategic partnership will be built by the two sides on credit loan, leasing operation, and non-financing business. Executive vice governor Fang Xiaoyu and the manager of CMB Ma Weihua present at the signing ceremony.

"In the past twenty years, CMB has been leading on product and service innovations and is at the head of domestic commercial bank. HNA and CMB has jointly launched co-branded credit card and cooperated on financing," said Chen Feng, the president of HNA.

On December 12, Hainan Airlines said it plans to buy 29.77 mln shares, or a 0.9277 pct stake, in China Merchants Securities ahead of the latter's initial public offering. The purchase price was set at 20 yuan per share, or a total of 590 mln yuan. Merchants Securities was founded in 1991 as one of the divisions of China Merchants Bank. It is principle engaged in the provision of a wide range of financial services including stock broking, margin financing, nominee and custodian services, share financing, stock borrowing & lending, corporate finance and asset management.

Hainan Airlines started to expand its business scope five years ago, which covers insurance, securities and financial trusts. "The cooperation will enhance the competitiveness of the two sides," said Ma Weihua.