China Eastern Airlines Corp. said it has improved the compensation package for A-share holders affected by its nontradable share reform plan on December 1.

Holders of the company's Shanghai-listed tradable A shares will now receive 3.2 free shares for every 10 shares held as compensation for allowing the company's nontradable shares to become tradable.

Under the original plan, issued Nov. 22, they were to receive 2.8 shares for every 10 shares held.

The compensation shares will come from the nontradable shares in the company held by its parent, China Eastern Air Holding Co., the listed company said in a statement.

The parent's 61.6 percent stake will be diluted to 59.7 percent after the completion of the share reform.

China Eastern Air Holding Co. agreed it wouldn't float its shares in the listed company in the 36 months after the completion of the reform, according to the statement.

China Eastern said it will hold a shareholders meeting to vote on the plan Dec. 18. Investors can also vote online from Dec. 14 to Dec. 18.

China Eastern's A shares closed at 3.11 yuan (US$0.39) on Nov. 17, and have since been suspended from trading on the Shanghai Stock Exchange pending the release of the details of the share reform.

Regulators began allowing the conversion of nontradable shares into tradable stock in April 2005, when about two-thirds of the domestic stock market's capitalization was accounted for by nontradable shares.