China Mobile to List at Home

(19 May 2009, BWCS Staff)

China Mobile looks set to list in its home market as early as possible. The telecoms giant, which is already listed on the Hong Kong and New York stock exchanges, is being encouraged to offer shares in its home market by the Chinese government. Beijing is determined to make shares in major domestic businesses available to Chinese investors. Earlier this month, China agreed to allow qualified foreign companies to list on its stock exchange through issuing shares or depository receipts.

Company Chairman Wang Jianzhou said at the company's AGM in Hong Kong, "China Mobile has been listed in Hong Kong and New York for nearly twelve years and the management is eager to seek a listing on the mainland as soon as applicable so that domestic investors will have a chance to invest in the company." The news sent the company's share price soaring and by mid-day it had jumped 4% in Hong Kong trading.

China Mobile hopes to become one of the first batch of Chinese companies, currently listed overseas, to issue CDRs (China Depository Receipts) and would apply as soon as the government provided a framework for such listings. The announcement comes days after China Mobile unveiled plans of acquiring a 12% block of Taiwanese mobile company Far EasTone, while adding that it was open to more acquisitions.

"We are still focused on the domestic market," Wang said. "At the same time, we are looking out for possible acquisitions. Assets were very expensive two years ago, but now they're not as expensive," he said.


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