(Yicai Global) Jan. 17 -- China has decided to relax its requirement of absolute state-owned holding of major national carriers Air China Ltd. [SHA:601111], China Eastern Airlines Corp. [SHA:600115] and China Southern Airlines Co. [SHA:600029] and allow relative holding by state-owned capital, but only by individual state-owned investment entities and their holding companies.

Yan Mingchi, head of policy and regulation with China's civil aviation agency, explained the new rules at a press conference today. They introduce actual control into relative holding, but still ensure control by state-owned capital, he said.

The state-owned capital shareholding ratio in the three airlines may not fall below 50 percent, he added.

The new arrangement also loosens the mandate of absolute shareholding by state-owned capital in major transport airports by now also allowing their relative holding.