China Mobile Becomes Nation’s Third-Largest Stock on 6G, AI Bets

(Bloomberg) -- China Mobile Ltd. has become the third-largest stock listed onshore by market valuation, thanks to a recent trading frenzy driven by artificial intelligence bets and the government’s 6G ambitions.

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A 27% rally this year in the state-owned telecom service provider has pushed its market cap to around 1.22 trillion yuan ($176 billion), beating China Construction Bank Corp.’s 1.15 trillion yuan. Its value is still around half that of market leader Kweichow Moutai Co., and 20% below runner-up Industrial and Commercial Bank of China Ltd.

The typically-staid telecom sector has come under the spotlight this year on the back of growing interest in AI-driven chatbots, revaluation on their cloud computing prospects, and Beijing’s bid to promote next generation network technology. In a sign of shifting investor preference, battery maker Contemporary Amperex Technology Co., which was once on the cusp of becoming China’s second-largest stock, has slid to the seventh.

Shares of China Mobile retreated Tuesday after hitting the highest since the the stock’s Jan. 2022 mainland debut in the previous session.

Its peers China United Network Communications Ltd. and China Telecom Corp. also took a breather after reaching multi-year highs earlier this month, with their gains onshore for the year at 32% and 48%, respectively.

(Updates with latest share prices.)

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