China Mobile yesterday confirmed it was in talks with Shanghai Pudong Development Bank over a potential investment in the lender, a step that could help the world's largest wireless operator expand its mobile payment services.
中国移动(China Mobile)昨日确认，正与上海浦东发展银行(Shanghai Pudong Development Bank)就一项潜在投资洽谈。此举可能帮助这家全球最大的移动运营商拓展其手机支付服务。
The confirmation of talks comes after Pudong Development's shares were suspended last Friday as the lender said it was preparing to sell stakes to strategic investors. Guotai Junan, one of China's biggest brokerages, said in a research note that Pudong Development planned to sell a 20 per cent stake to China Mobile for about Rmb40bn ($5.9bn).
Analysts said that expanding China Mobile's presence in mobile payments could be important at a time when competition in the telecoms sector is heating up. China Unicom, China Mobile's smaller rival, has recently started picking up third-generation subscribers at a faster pace as it operates a network using the mature 3GSM standard.
China Mobile was forced by the government to roll out 3G services using the less stable TD-SCDMA standard. With some customers reluctant to sign up to the homegrown standard, China Mobile has been forced to strengthen other value-added services to prevent its average revenue per customer from eroding.
The pressure is only set to intensify as a government push for convergence between telecoms, television and internet services could introduce even more competition in mobile content.
China Mobile said yesterday that it was holding preliminary discussions with Pudong Development in relation to the potential subscription of new shares and potential strategic co-operation. However, the telecoms group said it could not give an indication of the timing of the subscription and the strategic co- operation, adding that the transaction “may or may not proceed”.
Pudong Development was not available for comment.
Good afternoon. It is a great honor for me to be here in Shanghai, and to have this opportunity to speak with all of you. I'd like to thank Fudan University's President Yang for hi
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