China Mobile, the world’s largest mobile phone network operator, has said it is to set up a new unit, China Mobile Finance, for the provision of financial management services.
The registered capital of China Mobile Finance is expected to be Yn5bn…
China Mobile, the world’s largest mobile phone network operator, has said it is to set up a new unit, China Mobile Finance, for the provision of financial management services.
The registered capital of China Mobile Finance is expected to be Yn5bn (US$783m), of which Yn4.6bn (US$720m) will be provided by Beijing Mobile, a subsidiary of China Mobile.
The balance will be provided by China Mobile Communications Corporation (CMCC), the holding company of China Mobile.
In a statement, the company said: “As the business of the group continues to grow, it has become increasingly important to find a solution to further strengthen the internal funds management and better control liquidity risks, and to fully and better leverage the advantages on capital resources to improve the overall economic benefits of the group.”
In October last year, China Mobile announced that its subsidiary, Guangdong Mobile, completed the acquisition of a 20% stake in Shanghai Pudong Development Bank (SPD Bank).
The deal, which needed to receive regulatory approvals, was worth Yn39.5bn (US$5.9bn).
In March 2010, when the deal was first announced, China Mobile said that the two companies would cooperate to develop mobile finance and mobile e-commerce businesses.
