China Mobile confirms talks with Pudong Bank

Nicole McCormick
04 Mar 2010
00:00
News
Daily News

China Mobile has confirmed it has entered into “preliminary discussions” with Shanghai Pudong Development Bank (SPD Bank) about taking a stake in the mid-sized bank.

The firm said the talks were “in relation to the subscription by the company or its subsidiary of new shares in SPD Bank.”

Talks were also being held concerning a “potential strategic cooperation with SPD Bank,” which could suggest that the pair plan to tie up on mobile banking.

According to Chinese brokers last week, China Mobile is angling to buy 20% of the bank for up to 40 billion yuan ($5.9b).

SPD Bank is one of several Chinese banks needing to strengthen their capital base in the wake of the government’s 10 trillion yuanfiscal stimulus last year.

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