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7/21, 8:31 AM (Source: TeleTrader)
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Guangdong boosts China Southern with $4.36B

In a first injection under the new model, state-owned China Southern Airlines Co. Ltd. raised 30 billion yuan or $4.36 billion from the local government. It said on Saturday that the "equity diversification reform" was conducted with Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund.

The three entities split the investment equally. The transaction is a milestone for future cooperation with the province, said Hao Peng, top official from the State-owned Assets Supervision and Administration Commission of the State Council. The company based in Guangzhou, Guangdong, in the country's south, will be able to upgrade governance and participate in the integration of regional development, he added.

China Southern revealed it would use the funds to prop up its main activities and to help the Belt and Road Initiative (BRI) and the Greater Bay Area, which includes Macao and Hong Kong.

Breaking the News / IT