China Southern Airlines has suspended trading of its shares from today as it is set to receive a 1.5 billion yuan ($220 million) capital injection from the Chinese government.
The Guangzhou-based carrier has received a notice from its parent company, China Southern Air Holding, about a state-owned capital operation budget granted by the finance ministry, says the airline.
The amount "shall be injected to the company to support the principal aviation business development of the company," says China Southern.
The airline and its parent are "currently considering various arrangements to use the said fund to reduce the debt ratio of the company", it adds.
Trading of the airline's shares will suspend from today in order to protect the interests of investors and to avoid causing an impact on the share price, says the carrier.
Source: Air Transport Intelligence news
