China Mobile is investing $5.8 billion in a Chinese bank in an effort to get into the mobile finance and e-Commerce markets.
In a statement to the Hong Kong stock exchange, the operator said it had bought a 20 percent stake in the Shanghai Pundong Development bank through its subsidiary Guangdong Mobile.
The bank and China Mobile, the world’s largest operator by subscribers, have signed a memorandum of understanding outlining the joint development of mobile finance and mobile e-Commerce businesses.
The two companies plan to develop mobile payments, bank cards and funds transfer services on top of research and development projects.
China Mobile said the development of China’s macro-economy and increased penetration of mobile broadband services would make mobile payments and e-Commerce a “major means” of spending in the future.