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China Mobile to list on mainland market

Wang Jianzhou, chairman of China Mobile, said the company has begun preparing for a listing on the upcoming international board in Shanghai.

Zhang Chenhao, an analyst with Shanghai-based JLM Pacific Epoch said the government has long been planning to let overseas-listed State-owned enterprises (SOEs) return to the Mainland stock market, and the listing of China Mobile will serve as a model for other SOEs.

Chinese people have limited places to put their money, so the stock market becomes a major investment channel.

China Mobile, China Telecom and China Unicom have invested a total of $14.1 billion in 3G projects so far this year, according to the Ministry of Industry and Information Technology.

Alibaba.com reported that Zeng Jianqiu, professor at Beijing University of Post and Telecommunications, wrote in the IT Times that the investment will inevitably hurt the telecom companies’ profitability because they are still rolling out their 3G networks and no return will be seen in the short term. But according to some early results, the 3G products are more profitable than expected, and Zhang Chenhao, the analyst, said China Mobile is expected to outperform the other two because of its experience in providing mobile communication services.

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