China Southern Airlines (HKG:1055, SHA:600029) is considering listing its cargo arm in Hong Kong after scrapping an initial public offering in Shanghai, Bloomberg News reported Wednesday.
The spinoff may raise at least several hundred million US dollars, the report said.
The development comes two months after China Southern Air Logistics in February withdrew its listing application on the Shanghai Stock Exchange, citing changes in market conditions.
The potential deal coincides with a challenging period for the cargo business, as its reliance on Chinese exports is threatened by the US-China trade tensions.
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