The stock of Air China traded for the first time Wednesday on the London Stock Exchange (LSE) with its share price opening at 3.175 Hong Kong dollars (about 0.40 US dollars) and rising sharply to 3.28 HK dollars by 14.00 London time.

"This listing on the LSE is a great milestone for Air China," Air China Vice Chairman Wang Shixiang said at a ceremony before the LSE opened, adding that "listing in London was a natural choice for us as Europe is an important part of our business."

LSE Chief Executive Clara Furse said Air China, China's biggest airline, will be a key airline carrying passengers to the 2008 Beijing Olympics so "we are particularly pleased that such a high profile company has chosen a London listing to further its international ambitions."

"China is a key market for the LSE and we anticipate more companies will follow Air China's lead," Furse said, adding that the LSE is the natural link between leading Chinese companies and global capital markets.

The LSE said Air China would raise approximately 1.08 billion US dollars from the dual listing in Hong Kong and London which will be used to expand its fleet and on other infrastructure investments.

Air China's shares rose 8.2 percent on its debut at the Hong Kong Stock Exchange Wednesday where some 2.8 billion Air China shares were traded. The stock opened at 3.15 HK dollars (about 0.40 US dollars) and closed at 3.225 HK dollars (about 0.41 US dollars), well up on its initial public offering (IPO) price of 2.98 HK dollars (about 0.38 US dollars).

With the IPO 83 times over-subscribed by individual investors, the proportion of shares on offer to the public was lifted to 40 percent from 10 percent of the total offering.

The proportion on offer to institutional investors was 39 times over-subscribed.

The airline, with a fleet of 136 aircraft, said funds raised from the offering will be used to buy 10 Airbus and four Boeing jets.

Air China was able to use a single prospectus for its listings in London and Hong Kong due to the similar regulatory environments in the two financial centers.