(BFM Bourse) – Six months after its competitor China Telecom, the operator China Mobile, driven from Wall Street after a decree by Donald Trump in January 2021, raises nearly 7 billion euros in Shanghai, making it the most big deal of the decade in mainland China according to Bloomberg.
It is only January 5, but the introduction of the year has undoubtedly already taken place on the Shanghai Stock Exchange. A year after being banned from Wall Street (like its competitors China Telecom and China Unicom) following an executive order by former President Donald Trump prohibiting any American citizen from investing in a list of companies accused of ‘being involved in the Chinese military complex, the public operator (72% owned by the “State-owned Assets Supervision and Administration Commission”) China Mobile has raised some 6.9 billion euros, in a valuation operation the group near of 115 billion euros.
It is the biggest operation in mainland China in a decade, according to Bloomberg. More precisely since 2010, when the Agricultural Bank of China raised $ 22.1 billion by entering simultaneously in Shanghai and Hong Kong.
China Mobile, also listed in Hong Kong since 2000, is the world’s largest telecom operator in terms of number of subscribers with nearly one billion customers. The operation should in particular allow the group to make investments in 5G, this technology in full deployment which accompanies the emergence of connected objects and for which China Mobile already had 375 million subscribers at the end of November 2021. 5G, which allows large amounts of data to be transmitted in a very short time, is at the heart of an intense commercial battle between Beijing and Washington.
In a context of growing rivalry with Washington, China is encouraging its flagships to list on its national markets (Shanghai, Shenzhen, Hong Kong and now Beijing).
Up more than 9% at the start of the session, China Mobile shares finally ended their first trading session with a modest gain of 0.52% to 57.88 yuan.
(with AFP)
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