Carrier buys into China Southern

Shares of Spring Airlines surged 3.7 percent on the Shanghai Stock Exchange on Friday after the Shanghai-based budget carrier said it would invest in State-owned China Southern Airlines.

The low-cost carrier said that it would spend 846 million yuan ($123 million) to acquire 1.63 percent of China Southern's A-share nonpublic offering, making it the fifth largest shareholder in the airline. In a notice, China Southern said six other investors have also subscribed to the nonpublic offering, including parent China Southern Air Holding Co, China National Aviation Fuel Group Ltd and China Life Asset Management Co Ltd.

It also marked the second time that a domestic private carrier is investing in the nation's three largest State airlines - Air China, China Southern Airlines, and China Eastern Airlines.