China Mobile Still Considering Mainland Stock Market Listing

­China Mobile has resurrected talk of a listing its shares on the Chinese mainland stock markets, in addition to its current listing in Hong Kong. China Mobile's chairman, Wang Jianzhou told the South China Morning Post that he expects the regulators to permit a listing soon.

There have been on/off talks about the company listing on the Shanghai for the past couple of years, but the extreme volatility of the stock market in the past has caused concern to overseas investors. Earlier this year, Wang Jianzhou said that the company would prefer to make the listing using China Depositary Receipts (CDRs).

"China Mobile doesn't need the money, it's more to comply with government policy," Marvin Lo at Daiwa Securities told the newspaper. "It will help to boost sentiment."

Reports early last year suggested that China Mobile had already chosen Goldman Sachs Group's local arm, as the underwriter for the offering, which could raise upwards of US$10 billion for the company.

The China Securities Regulatory Commission held an internal meeting in July to discuss setting up an international board on the Shanghai exchange on which overseas companies will trade for the first time, according to sources with knowledge of the plans. Red-chip companies such as China Mobile and CNOOC (SEHK: 0883) will also be allowed to list in the country.

Chinese state owned, China Mobile Communications Corporation (CMCC) is the ultimate controlling shareholder of the Hong Kong listed China Mobile, holding indirectly approximately 74.25% of the total issued and outstanding share capital of the Company.

On the web: South China Morning Post

Posted to the site on 13th September 2009