China Southern Airlines and its controlling shareholder China Southern Air Holding have agreed to invest a total of 500 million yuan into their finance arm.

China Southern will contribute 170 million yuan, while the group will inject 330 million yuan into Southern Airlines Group Finance Company (SAGFC), the Guangzhou-based carrier said in a disclosure on the Hong Kong Exchange.

After the capital increase, China Southern will increase its stake in the financial unit from 21% to 25%, while the group holding 66%.