China Mobile becomes most valued firm in the domestic stock market, beating Kueichow Moutai
China Mobile finally beat Kueichow Moutai to become the No. 1 firm by market value in the domestic stock markets on Tuesday, the first time for a technology firm to take the crown in the recent decade.
The new most valued stock "king" represents China's booming digital economy wave and surging demand on 5G and artificial intelligence.
On Tuesday, Shanghai-listed China Mobile closed 2.79 percent higher at 105.68 yuan (US$15.3), which boosted the mobile carrier's domestic market value to 2.26 trillion yuan. It surpassed Kueichow Moutai's 2.21 trillion yuan by Tuesday.
During the Monday morning session, China Mobile temporally surpassed the wine marker's market value. But Kuaichow Moutai climbed and maintained the top position later on Monday.
It's a match between "digital technology" and "luxury wine" while the result is expected, netizens said in social media.
It also fits well with China's national strategy to speed up Digital China construction by 2025. By 2035, China will be at the global forefront in terms of digital development, according to published statements.
China Mobile will benefit from the digital infrastructure construction like 5G networks and industry Internet. Its huge volume database and cloud capabilities, with its over 1 billion user base, also makes it a vital player in the generative AI wave, analysts said.
In 2023, Shanghai-listed China Mobile jumped 56 percent by Tuesday, much higher than the Shanghai index.
In the past decade, China's most valuable firms were mainly in traditional industries. They include ICBC from the banking industry, PetroChina in energy, Ping An from the insurance industry, and Kueichow Moutai as a luxury wine vendor, normally labeled from the high-end consumption industry.