Shares of SHANGHAI () -China Mobile Ltd gave up strong initial gains, but on Wednesday in their Shanghai debut, the company ended the day higher after accumulating 48.7 billion yuan ($ 7.64 billion) of China’s largest shares in the last decade. .
The stock opened at 63 yuan, up 9.4 percent from 57.58 yuan, and closed at 57.88 yuan, up 0.52 percent during the day.
The carrier’s shares in Hong Kong rose 3.33%. In a statement on Tuesday, the company said it plans to repurchase 2.05 billion shares worth about $ 13 billion.
Tsz Wang Tam, an analyst at DBS Vickers in Hong Kong, said the announcement of the repurchase of shares helped boost the company’s stock on Wednesday, but warned against reading too much of the short-term performance of the shares.
China Mobile’s debut was closely followed recently after a number of Chinese companies, including BeiGene Ltd., saw their shares fall below offer prices on the first day of trading.
China Mobile, the world’s largest mobile operator by total number of subscribers, sold 845.7 million shares in Shanghai for 57.58 yuan each.
China Mobile said it plans to use the proceeds from the proposal to develop projects that include high-end 5G networks, infrastructure for cloud resources and intelligent ecosystems.
(1 dollar = 6.3721 yuan)
Interviews by Andrew Galbraith and Samuel Shen; Edited by Tom Hogg, Stephen Coates and Louise Heavens