China Mobile's chairman believes the potential purchase of a stake in Pudong Bank will help the mobile operator build, launch, and operate mobile financial services. Analysts that cover China think differently - they believe that purchasing a bank to deliver mobile commerce services is a dubious proposition.
March 4 (Bloomberg) -- China Mobile Ltd.shares fell in Hong Kong trading on concern the world’s biggest phone company by value is deviating from its main business by considering an investment in Shanghai Pudong Development Bank Co.
China Mobile lost 2.2 percent to HK$73 on the city’s stock exchange in early trading, compared with a 0.6 percent rise on the benchmark Hang Seng Index.
“It doesn’t make sense for the management to be using funds this way,” saidBertram Lai, who rates China Mobile shares “neutral” at CIMB-GK Securities in Hong Kong. “They should be returning it to shareholders.”
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