Companies

China Mobile to keep SPDB shares for 5 yrs

(Agencies)
Updated: 2010-09-01 12:00

China Mobile, the nation's top mobile phone service provider, announced Tuesday it would extend the lock period of its 20-percent stake in Shanghai Pudong Development Bank (SPDB) to five years, following regulations, Reuters reported.

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That will be two years longer than previously announced. China Banking Regulatory Commission regulations, the country's top banking watchdog, stipulated that China Mobile could not transfer its SPDB shares within five years, the company said, according to the report.

Guangdong Mobile, China Mobile's branch in South China's Guangdong province, bought a 20 percent stake in SPDB for 39.8 billion yuan ($5.8 billion)?in March. The deal has been approved by regulators and makes the mobile carrier the second-largest shareholder of SPDB.

China Mobile's shares closed at HK$79.15 ($10.18) on Tuesday, down 1.86 percent.