China Southern Airlines Co., the nation's biggest carrier, reported a rise to the biggest levels since June 2008 in Hong Kong trading following the announcement of plans to sell at least 10.75 billion Yuan ($1.6 billion) of new shares to pare debts.

Its shares registered a jump of 7.1 percent to HK$3.19 at the close. In Shanghai, the airline grabbed 3.5 percent to 6.85 Yuan. The shares last traded in both cities on Feb. 22.

The airline's parent is revealed to acquire 1.5 billion Yuan of new shares in the sale via money it fetched from the government as part of efforts to bail out unprofitable carriers.

The parents of Air China Ltd. and China Eastern Airlines Corp., the nation's No. 2 and No. 3 carriers, have also received state funds to pare debts.

China Southern reveals to sell upto 1.8 billion new shares in Shanghai for at least 5.66 Yuan apiece to up to 10 investors, including its parent, China Southern Air Holding Co., it posted in a filing late yesterday.

Zhongsheng's founding partners Huang Yi and Li Guoqiang together possess an 85 percent stake, while General Atlantic holds 15 percent, underwriter UBS said in a report.