China Mobile Communications Group, the parent company of China Mobile, is planning to boost its holdings in the wireless carrier by purchasing up to RMB 5 billion ($789 million) of its Shanghai-traded shares, reports Bloomberg. China Mobile is the country’s largest mobile carrier by sales. On Friday, China Mobile Communications bought about RMB 710 million of shares, representing a 0.058% stake in China Mobile, according to the filing.
China Mobile Communications Group intends to buy RMB 3 billion to RMB 5 billion of the listed firm’s A shares by the end of this year, according to a filing with the Shanghai stock exchange Sunday. The company didn’t specify a purchase price for the shares.
The proposed stake increase demonstrates China Mobile Communications’ confidence in China Mobile’s future development and recognition of its long-term investment value, according to the exchange filing. The move will also boost investor confidence in the company, it said.