Shanghai, Jan 26, 2026, 03:27 GMT+8 — Premarket
- China Mobile’s A-shares start Monday trading close to the lower edge of their recent range.
- The “big three” telecom stocks wrapped up Friday with mixed results, pointing to targeted selling rather than a sector-wide move.
- Rates and liquidity signals are taking center stage as key central bank dates approach.
China Mobile Limited Class A shares dropped 0.9% on Friday, closing at 95.38 yuan ahead of Monday’s session in Shanghai. (MarketWatch)
The drop is significant since China Mobile is a major, state-supported dividend stock that many local funds rely on as a defensive play. When it nears the lower end of its range, it tends to drag other “yield” trades into focus.
This week, that dynamic is even more pronounced. Telecom stocks often act like bond proxies during periods of weak growth — yet they can drop quickly once investors push for higher yields on those steady, slow-moving cashflows.
On Friday, the stock fluctuated between 95.24 and 96.41 yuan, with a trading volume close to 15.8 million shares, matching its recent average. Over the past year, the shares have dropped roughly 12%, offering a trailing dividend yield near 5%. The 14-day relative strength index (RSI), which signals momentum and tends to flag readings below 30 as “oversold,” hovered around 22.6. (StockAnalysis)
Peers delivered a mixed picture. China Telecom’s shares on the Shanghai exchange slipped 0.3% Friday, whereas China Unicom climbed roughly 0.6%, making China Mobile the laggard among the three heading into the weekend. (StockAnalysis)
Policy-sensitive money is closely watching liquidity moves. China’s central bank announced a 900 billion yuan one-year medium-term lending facility (MLF) operation set for Friday, aimed at “maintaining ample liquidity.” The MLF lets banks borrow from the central bank using collateral, with its pricing influencing short-term funding costs. (State Council of China)
Traders are watching closely to see if China Mobile stays above this year’s low once cash trading picks up again. A clear breach could trigger new short-term selling, while a rebound might lure dividend hunters back in.
The downside is straightforward. If yields climb, that roughly 5% payout loses its charm, and telecoms could behave like slow “bond proxies”—but in reverse. Higher capital spending on network upgrades or fresh pressure to cut fees would also undermine their usual defensive appeal.
The key global rate event this week is the U.S. Federal Reserve meeting on Jan. 27–28. The policy statement will be released at 2 p.m. Eastern on the second day, followed by Chair Jerome Powell’s news conference half an hour later. (Federal Reserve)
China Mobile’s next major milestone is its full-year earnings report, due March 27. Investors won’t just focus on the profit numbers—they’ll be watching closely for clues on capital spending and how the company plans to reward shareholders. (Investing)
