Air China's stock (00753.HK) plummeted 8.67% in early trading, hitting HK$5.58 with a turnover of HK$69.83 million. The sharp decline comes as the company reported mixed financial results for the first three quarters of the year and announced a significant private placement plan.

While Air China's revenue for the first nine months of the year increased by 1.31% year-on-year to RMB 129.83 billion, and net profit rose 37.31% to RMB 1.87 billion, the third-quarter results painted a less optimistic picture. In Q3, the company's revenue grew marginally by 0.9% to RMB 49.07 billion, but net profit declined by 11.31% to RMB 3.68 billion, disappointing investors and contributing to the stock's downward pressure.

Adding to investor concerns, Air China unveiled plans for a private placement of up to 3.044 billion A-shares to its parent company, China National Aviation Holding Corporation, and its wholly-owned subsidiary. The placement, priced at RMB 6.57 per share, aims to raise up to RMB 20 billion. The company stated that the proceeds would be used for debt repayment and working capital. While this move may strengthen Air China's financial position in the long term, the potential dilution of existing shareholders' stakes appears to have negatively impacted market sentiment in the short term.