China Mobile Cdr Distribution And Pricing

This thesis first gives an overview of China Mobile's public offering activity and reaches the conclusion of why it is better for China Mobile to raise money through domestic security market at this stage. Then, the thesis does a thorough investigation about the DR, both in theory and in practical term, focusing on basic items, the function of DR, the current situation of DR in foreign countries, CDR' current development and key issues of designing it. Then the thesis investigates China Mobile CDR's place of issuing, related parties when issuing and foreign exchange issues. The thesis suggests that China Mobile should consider China A share market for its public offering in the form of CDR and its price should be in RMB. Then, the thesis discussed the rights and duties of related parties and designs the appropriate legal relationship for those parties. Next, the thesis analyses the price of China Mobile's CDR. The thesis derives the China Mobile CDR's intrinsic value and beta with CAPM model and Dividend Discount Model (DDM). The thesis also conducts comparable company analysis using ratios commonly applied to A share companies, in particular Price to Book Value Ratio and Price to Earning Ratio. The thesis reaches the appropriate price for China Mobile's CDR under current market condition. Finally, the thesis discusses the effect of currency regulation on CDR's price. The conclusion is China Mobile's CDR will have a price around RMB 33 Yuan in the current market situation and it will tend to be correlated closely with China Mobile's stock price in Hong Kong after loosen the regulation on exchange police.