China Mobile ranks third in national stock market due to Investments in 6G and AI

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  • The recent surge in stock prices has elevated the market capitalization ranking of the company on the mainland.
  • The telecom sector experienced a boost in stock prices, reaching multi-year highs due to positive industry sentiment.
  • China Mobile Ltd. now ranks as the third-largest onshore stock by market valuation.

Due to the government's push for 6G technology and a surge in trading activity driven by artificial intelligence investments, China Mobile Ltd. has risen to become the third-largest onshore stock in terms of market valuation.

This year, the market capitalization of the state-owned telecom service provider has increased by 27%, reaching approximately 1.22 trillion yuan ($176 billion), surpassing China Construction Bank Corp.'s 1.15 trillion yuan. Despite this, its value is still only half that of the market leader, Kweichow Moutai Co., and 20% less than the runner-up, Industrial and Commercial Bank of China Ltd.

The unremarkable telecom sector has garnered attention this year due to increasing interest in AI-powered chatbots, a reassessment of their potential for cloud computing, and Beijing's efforts to promote next-generation network technology. As a result of changing investor preferences, Contemporary Amperex Technology Co., a battery maker that was once poised to become China's second-largest stock, has fallen to seventh place.

China Mobile's shares fell on Tuesday after reaching their highest point since the company's debut on the mainland stock exchange in January 2022 during the previous session.

China United Network Communications Ltd. and China Telecom Corp., which are two other companies in the same industry as the aforementioned company, experienced a pause in their upward trend. This occurred after both companies achieved their highest levels in several years earlier this month. Despite the pause, both companies have still experienced significant gains onshore for the year, with China United Network Communications Ltd. seeing a gain of 32% and China Telecom Corp. experiencing a gain of 48%.

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