May 11 Investors can buy China Mobile Ltd
, the world's biggest wireless company, at a deep
discount to international peers and get a 4 percent dividend
while waiting for a turnaround, according to Barron's.
In an article for release on Monday, Barron's said China
Mobile is a "cheap play" on Alibaba, the Chinese e-commerce
giant planning an initial public offering later this year.
Alibaba needs China Mobile, because substantial growth in
Chinese e-commerce hinges in part on high-speed 4G data networks
like the system China Mobile is rolling out ahead of its
competitors, which could revive growth.
"China Mobile has been hampered by an inferior network, but
the rollout of 4G has the potential to shift the advantage,"
said Matthew Ring, an analyst at Pzena Investment Management, in
Barron's said China Mobile is currently cheap because the
Chinese government, which controls 74 percent of the shares and
regulates the company, forced China Mobile to adopt a home-grown
wireless technology for its 3G service.
That technology proved inferior to the services offered by
competitors China Telecom Corp Ltd and China Unicom
Hong Kong Ltd, which used 3G services based on
international standards, the article said.
(Reporting by Scott DiSavino; Editing by Sophie Hares)