China Mobile buys bank share


China Mobile has bought a 20% stake in Shanghai Pudong Development (SPD) Bank, for 39.8 billion yuan (€4.4 billion). Now the world’s biggest mobile operator in terms of number of subscribers (500 million), which has by far the greatest coverage in rural areas, has acquired a platform from which it can extend its m-banking offer.

However last year the Chinese government reorganised the three mobile operators in China with the aim of fostering greater competition and preventing market dominance, which has pushed China Mobile into looking for new ways of generating revenue and keeping hold of customers.

China Mobile is now Shanghai Pudong Development Bank’s second-largest shareholder.