China Mobile to buy 20% stake in Pudong Bank

www.WirelessFederation.com/news Following Shanghai Pudong Development Bank’s announcement to enlist strategic investors, including China Mobile, the world’s biggest wireless operator, its shares were suspended from trading on Friday.

20 per cent stake in the bank, which is 3.8 per cent owned by Citigroup, is planned to be sold to China Mobile for about Rmb40bn ($5.9bn).

Pudong Development is one of the many Chinese state-controlled banks that are seeking to raise funds to shore up their balance sheets recently.

A year of unprecedented loan growth and the introduction of stricter capital requirements by regulators have been attributed behind the move by the company.