China Southern Is Said to Mull Hong Kong IPO of Cargo Unit

China Southern Airlines Co. is exploring a Hong Kong initial public offering for its cargo business after shelving plans to do so in Shanghai, according to people familiar with the matter.

The China Southern Air Logistics IPO could raise at least several hundred million US dollars, the people said, asking not to be identified because they weren’t authorized to speak publicly. Deliberations are still at a preliminary stage, they said. China Southern didn’t respond to requests for comment.

The deal may be coming at a tricky time for the company, which relies on Chinese exports that are under threat because ...