China’s state-owned company China Southern Airlines invests $1.5 billion in a subsidiary in Xiongan

Beijing. July 2. Silkroadnews - China Southern Airlines has announced plans to invest 10 billion yuan (about $1.5 billion) to establish a subsidiary in the new area of Xiongan in Hebei Province, China Plus reports.
A quarter of the investment will be made in cash, while the remaining part will be an in-kind contribution of aircraft.
China Southern Airlines is the first of China’s three state-owned airlines (the other two are Air China and China Eastern), to establish a subsidiary in the new area of Xiongan and provide civil aviation services in the new city.
Reportedly, the subsidiary company will provide domestic and international passenger services, as well as cargo transportation, aircraft maintenance, etc.
In its statement, the company said the new subsidiary will also operate in its Beijing hub and increase its presence in the market.
In April 2017, China announced its plans to establish Xiongan New Area, a new city in Hebei Province, 100 kilometers southwest of Beijing. Xiongan is the third “new area of national significance” after the Shenzhen Special Economic Zone and Shanghai Pudong New Area. The government’s plan is to use the new city to better coordinate the development of Beijing, Tianjin and Hebei and become a new home for government agencies and enterprises that can be relocated from Beijing.