China Mobile to hold Pudong Bank shares for 5 yrs

HONG KONG: China Mobile, the country's largest mobile carrier, will hold its 20 percent stake in Shanghai Pudong Development Bank for five years, two years longer than previously announced.

China Mobile said on Tuesday the lock-up period had been extended because China Banking Regulatory Commission regulations stipulated it could not transfer the shares within five years. In March, China Mobile said it would pay $5.8 billion for 20 percent of Pudong Development Bank to help the bank strengthen its foothold in China's nascent mobile e-commerce sector.

Tuesday's announcement came after the market closed. China Mobile's shares fell 1.9 percent on the day, lagging the main Hang Seng index's .HSI 1.0 percent drop. Pudong Development Bank's shares were down 0.8 percent, versus the Shanghai composite index's .SSEC 0.5 percent fall.