Shanghai Pudong Development Bank (SPD Bank) said on Mar.3 it was in talks to sell a stake and conduct strategic cooperation with China Mobile and its subsidiary in a statement. SPD said trading of its shares would remain suspended as the plans needed consideration.

That partly confirmed wide spreading rumor when SPD Bank halted trading of its shares on Feb.26 after announcing it may bring in a new strategic investor that the bank would raise 40 billion yuan via the sale of shares to China Mobile.
Banking analyst She Minhua from Haitong Securities Co., Ltd. said it would be an advantage for SPD Bank successfully introducing China Mobile as its strategic investor, which would bring in not only capital, but also great synergy effect with more than 500 million subscribers of China Mobile. In addition, the deal would allow SPD Bank to acquire bigger growth in emerging businesses such as mobile banks.

According to data displays, by Sept. 2009, SPD Bank’s capital adequacy ratio is 10.16 percent, and the core capital adequacy ration reduced to 6.76 percent, lower than the 7 percent standard line set by the China Banking Regulatory Commission.

Full article in Chinese: http://www.caijing.com.cn/2010-03-04/110389355.html