China Mobile Eyes Buying Stake in Pudong Bank

China Mobile's Chairman Wang Jianzhou confirms that negotiations for the acquisition of and strategic partnership with Shanghai Pudong Development Bank are close to completion, reports the South China Morning Post, adding that the deal could fire up adoption of the carrier's mobile payment system across the mainland.

 

"We will combine our efforts to develop an online payment service that would be like having an Octopus card-like system in a mobile phone," Wang said in a video-conference call with the Post. Citing Wang, the Post notes the partnership will not be exclusive as his company plans to form other partnerships with other banks in the future.

 

However, the newspaper reveals that a Morgan Stanley report describes the bank deal as "a negative" for China Mobile, "given that mobile banking has not given Asian telecoms operators much meaningful revenue and profit upside."

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