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China Southern Airlines likely to receive 1.5b yuan

(Xinhua)
Updated: 2010-02-23 09:22
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BEIJING: China Southern Airlines, the country's largest carrier, said late Monday that it was likely to receive 1.5 billion yuan ($219 million) as capital injection from its parent company.

The parent China Southern Air Holding Co would use the funds, which was allocated by the Ministry of Finance, to "support the development of the airline's core business," said the company in a statement to the Shanghai Stock Exchange.

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China Southern Airlines, together with its parent, is currently considering "arranging the funds to reduce the company's asset debt ratio," according to the statement.

Trading in the shares of China Southern Airlines would be suspended in Shanghai from Tuesday for no more than 10 trading days, it said.

Shares of China Southern Airlines surged 4.91 percent to 6.62 yuan on Monday.