Moody's: No impact on China Mobile

Moody's Investors Service said it noted the recent news made by China Mobile Ltd. regarding the possibility of it taking an equity stake in Shanghai Pudong Development Bank Co., Ltd. No further details about the deal were provided.

The investment by telecommunications operators into banks and credit card companies is becoming an increasing trend across the region fueled by the rise of mobile payment systems and the growth of remittances in particular, Moody's said.

Given China Mobile's large cash position and low leverage, the agency said it is expected that a sizeable investment could be funded without any negative implications for the balance sheet.

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