China Mobile Ltd, the world's biggest cell-phone
operator by users, may be among the first companies approved to sell Chinese
depositary receipts, or CDRs, after the government eased regulations on domestic
securities issues.
China Mobile, which lists shares in Hong Kong, awaits approval on an
application submitted about five years ago for a domestic listing of CDRs,
Rainie Lei, a Hong Kong-based spokeswoman for the company, said by telephone
yesterday. Regulators have yet to introduce CDRs in China.
"Listing CDRs is the preferred way for China Mobile to tap domestic capital
markets, but we aren't ruling out an A-share listing," Lei said.
Chinese phone operators such as China Mobile aim to raise cash to fund
networks for so-called third-generation, or 3G, services, ahead of the
government's issuance of licenses, Bloomberg News said.
Initial investment on equipment for 3G, which lets users watch videos and
download music to their handsets, is estimated at 10 billion yuan (US$1.3
billion) to 20 billion yuan, technology research firm Analysys International
said in a report in July.
China Mobile applied to sell yuan-denominated Class-A shares in the country
and "is in the queue" for approval from the China Securities Regulatory
Commission, the Shanghai Securities News reported on Saturday, citing an
unidentified vice president at China Mobile Communications Corp, China Mobile
Ltd's parent.
Zhou Xiaochuan, former chairman of the commission, said in July 2002 the
regulator is working on a plan to allow Hong Kong-listed Chinese companies to
sell CDRs in the country.
CDRs are similar to American depositary receipts, which are certificates
issued by a US bank representing a number of foreign securities held and traded
in the United States as domestic shares.
China in May ended a yearlong ban on initial public offerings, aiming to
attract Chinese firms traded overseas to sell stock domestically. Many of
China's biggest and most profitable companies, including PetroChina Co and Bank
of Communications, are traded in Hong Kong.
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