Postal Bank Gains After China Mobile Buys $6.5 Billion Stake - Bloomberg
Summary
(Bloomberg) -- Postal Savings Bank of China Co., one of the countrys largest state-owned commercial lenders, rose in Shanghai trading after China Mobile Ltd. agreed to buy a stake worth 45 billion yuan ($6.5 billion) in the company.Postal Savings Banks yuan-denominated A shares rose as much as 4.3% early Thursday, before paring gains to 1.9%. China Mobile, which is also controlled by the government, fell 2.8%.The mobile carrier snapped up 6.8 billion shares in Postal Savings Banks private placement, making it the third-largest shareholder with a 6.8% stake, according to a Shanghai Stock Exchange filing.Its common for Chinas state-owned enterprises to invest in its banks. Agricultural Bank of Chinas 2018 private placement of 100 billion yuan of A shares drew state enterprises like China National Tobacco Corp. and Central Huijin Investment Ltd. as investors.Telecom businesses like China Mobile, flush with cash, have taken stakes in banks in the past. It also owns an 18% stake in Shanghai Pudong Development Bank Co.Postal Savings Bank is Chinas fifth-largest bank by deposits, and also focuses on providing credit access to rural areas. It has about 40,000 branches, more than any other Chinese lender.