(Yicai Global) July 22 -- China Southern Airlines, one of the nation's largest air carriers, has accepted CNY30 billion (USD4.4 billion) in investment from three entities to accelerate its mixed-ownership reform. 

The Guangdong Hengjian Investment Holding, Guangzhou City Construction Investment Group and Shenzhen Penghang EquityInvestment Fund will each have a 10.4 percent stake in China Southern Airlines, the Guangzhou-based aviation firm said in a statement on July 20. 

China has been encouraging state firms to engage in the nation's mixed-ownership reform to make these companies more competitive. 

China Southern Airlines plans to use the fresh funds to spur more cargo business and serve the Silk Road-inspired Belt and Road initiative and the integration of the Guangdong-Hong Kong-Macao Greater Bay Area.

The State-owned Assets Supervision and Administration Commission of the State Council will hold 61.8 percent of the target company's equity and the National Council for Social Security Fund has 6.9 percent after the transfers. 

Founded in 1995, China Southern Airlines operates 172 routes and serves more than 15 million passengers annually through its routes to nearly 40 countries and regions that participate in the Belt and Road investment scheme. 

The investors are a group of state-funded institutions. SASAC-backed Hengjian engages in investment and asset management business. State-owned Guangzhou City Construction invests in urban infrastructure. Shenzhen's municipal government established the Penghang Equity Investment Fund to promote aviation business in southern China. 

Editor: Emmi Laine