China Southern Airlines has completed the issuance of $198 million-worth of Hong Kong-listed shares to American Airlines, according to a filing to the Hong Kong stock exchange. The issuance of a total of 270 million new shares, giving American a 2.68% stake in the Chinese state-owned carrier, closed on 10 August. The move gives American a participant on the China Southern's board, but the US carrier will not hold any voting rights. 

American Airlines and China Southern agreed the purchase in March 2017. China Southern said it intends to utilize the net proceeds for supplementing its general working capital. The agreement contains a three-year lock-up period, in which American Airlines must not dispose of any of the subscription shares. The Guangzhou-based airline received an acceptance notice from the China Securities Regulatory Commission (CSRC) in May this year regarding the non-public issuance of H Shares.