China South Locomotive and Rolling Stock plans to raise up to $2.1bn in a dual Shanghai and Hong Kong initial public offering scheduled for June, reflecting continued demand for China infrastructure stocks in spite of the slump in both markets.

China Southern Railway, as the company is also known, is set to float about 25 per cent of its shares in Shanghai and another 15 per cent in Hong Kong, pending final approval from Chinese regulators, according to a person familiar with the transaction.