Reports coming out of China indicate China Mobile is about to purchase a significant stake in Shanghai Pudong Development Bank. The move, which will see China Mobile purchase 20% of the bank, is estimated to be worth almost six billion dollars. Some analysts predict that China Mobile is looking to create a solid foundation for its mobile payment service. Michael Clendenin, managing director at research and consultancy firm RedTech Advisors said, "China Mobile may be trying to buy some legitimacy for its mobile payment system. I've heard that banks in China aren't happy with the RF-SIM mobile payment technology that China Mobile is championing, so the operator may need this type of investment in Shanghai Pudong Development Bank and smooth the way to spreading its mobile payment system throughout the country." China Mobile’s parent company is owned by the state, which makes one wonder why the government couldn’t have bridged the gap between the mobile carrier and the banks without the need for this acquisition.
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