China Southern Airlines (CZ, Guangzhou) has received a tentative authorisation from the China Securities Regulatory Commission to issue a new batch of nearly 601 million shares nominally worth CNY1 yuan each, or CNY601 million yuans (USD94.9 million) in total to Nam Lung, a Hong Kong-based investment firm.

The shares will be issued as H Shares, which are listed on the Hong Kong stock market but subject to mainland Chinese laws.

The issuance is conditional on China Southern obtaining approval to issue 1.8 billion A Shares to ten investors, including its parent China Southern Air Holding Co.

"The Non-public Issuance of A Shares and the Non-public Issuance of H Shares are inter-conditional upon each other. If any matter relating to the Non-public Issuance of A Shares fails to obtain all of the approvals required under the applicable laws and regulations, any content relating to the Non-public Issuance of H Shares will then not be implemented," the group has said in a filing to the Hong Kong stock exchange.