China Mobile Subs & Shares: Big & Bigger

It Pays to be a Winner

China Mobile's influence continues to grow to gravity shifting proportions.

Besides having more subscribers than the entire US population, investment markets are coming around to their corporate value as well. At the end of June, China Mobile (CMCC) "Red Chip" listed stock surpassed HK $80 (US$10.30), an historic high.  In July it passed HK$90 (US$11.60), then in August's  subprime crisis slipped back to HK$80. In the last three months, it has rocketed to HK$ 160 ($20.60). 

Up 130% in 10 months

So far this year, its stock has gained over 130%, boosting the company’s market capitalization by US$240 billion--let's review that again...the increase, not the total, market cap is US$240 BILLLION, making China Mobile worth more than US$400 BILLION. It is now the fourth-largest listed company in the world by market cap after ExxonMobil, PetroChina and General Electric. Reflecting China's growing global stature China now accounts for six of the world’s 12 largest listed firms - a two fold sign of a strong equities markets, as well as the strength of China's global competitive posture.

AT&T is a "first looser"

In a recent CitiBank report, projects China Mobile to pass US$190. Reflecting China Mobile's gravity shifting effects, here are some astonishing facts reflecting China Mobile's sheer power in the market place:

- China Mobile accounts for nearly 50% of the total market cap of all Asian telecoms companies
- China Mobile's market cap is US$155 billion more than also ran, "first looser" (second-placed) American telecoms operator AT&T
- China Mobile singlehandedly is responsible for the MSCI Asia Pacific telecom index (Morgan Stanley Capital International) rising 59% this year while the broader MSCI Asia Pacific index has risen 48%

The Future is even Brighter

Citibank also presents the case for China Mobile's share price to rise even further due to two factors: positive investor sentiment attached to an impending A-share listing (although no exact date has been set); it has RMB cash and the RMB is appreciating against the dollar (it is, of course, in the same boat as many other Chinese companies - and right now the rising tide is floating all boats); with mobile communications a  consumer play it will do well coming out of the Beijing Olympics next year.

What a ride...

Having worked with China Mobile as a customer of mine going back give years, their growth is nothing short of phenomenal given the scope and scale of the company.