China Southern soars nearly 9 percent on strong Q1

HONG KONG (Reuters) - Shares in China Southern Airlines (1055.HK: Quote, Profile, Research, Stock Buzz) (600029.SS: Quote, Profile, Research, Stock Buzz), the country's largest airline by fleet size, soared nearly 8.9 percent on Monday after the firm reported a surge in first-quarter earnings.

The carrier posted 796 million yuan ($113.8 million) in first-quarter earnings, up 523 percent.

On Sunday, the firm said its subsidiary Xiamen Airlines had signed a contract with Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) to buy 20 Boeing 737 airplanes.

The 20 planes have a list price of about $1.5 billion, but Xiamen Airlines negotiated a lower price, China Southern said.

The subsidiary would pay for the planes, due to be delivered between April 2014 and October 2015, with its own funds and with bank loans.

(1=6.993 YUAN)

(Reporting by Joseph Chaney; Editing by Edmund Klamann)