China Mobile becomes second largest domestic shareholder of PSBC

China Mobile, the nation's dominant mobile carrier, became the second largest domestic shareholder of the Postal Saving Bank of China, in a bid to provide stronger financial services in boosting the real economy and maintaining and increasing the value of state assets, a senior executive of the bank said on Friday.

"The move has a direct bearing on strengthening the PSBC's capacity to supply credit, as well as boosting its capability to serve the real economy and guard against risks," said PSBC President Liu Jianjun, adding that with a capitalization of 45 billion yuan ($6.5 billion) in place, the tier 1 capital adequacy ratio will be further raised.

With nearly 40,000 business outlets, PSBC is a leading retail bank in China, while China Mobile is the largest carrier with more than 900 million mobile users. Cooperation between the two sides will promote the implementation of inclusive finance programs and rural revitalization strategy, he said.

"We will work in sync to provide integrated financial services for rural areas through data and technology integration, which will generate concrete benefits," Liu said.

Liu also noted that technological advances have been an important foundation of development in the financial sector. Working together with China Mobile will catalyze the progress of financial technology, which will thus improve operational efficiency, lower relevant costs and reduce loan risks.

Financial technology is part and parcel of China Mobile's plan to boost information services. The experience gained in cooperation with PSBC will enhance its capabilities and extend to other banks, China Mobile told local news portal The-Paper.cn.

The company also said that the banking industry is the most important infrastructure in the financial sector. The valuation of the banking industry has been at a historical low. As the banking industry will maintain long-term stable growth, its valuation will improve. In the long run, the investment will also bring considerable financial benefits to the company.