Key Takeaways
China Mobile Ltd. (00941.HK) received a “Buy” rating and a HKD105.1 price target from Citi analysts following the state-owned telecom giant’s pivot to an AI-driven, token-based business model.
The bullish assessment came after China Mobile’s Mobile Cloud Conference on May 8, where the company detailed its strategic transformation. “In the long run it is well positioned to capture opportunities from an autonomous Agent-driven tokenized business model, which represents a positive development,” a Citi research report stated.
The move by China Mobile was met with a positive reception from Citi, which outlined the key details of the new strategy. The bank maintained its "Buy" rating on the company's stock, while issuing a new price target that suggests analyst confidence in the long-term execution of the plan.
The strategic shift places China Mobile directly in the competitive field of artificial intelligence, where other Chinese firms are raising massive capital. Moonshot AI, a startup known as Kimi, is reportedly closing a $2 billion funding round at a $20 billion valuation, with backing from giants like Alibaba and Tencent, according to a LatePost report. This underscores the capital-intensive nature of developing advanced AI models in China’s cut-throat market.
China Mobile’s plan centers on tokenization as the monetization strategy for its vast computing power, proprietary models, and future AI applications. In this model, usage of services would be measured and paid for in tokens, consumed by autonomous “Agents” performing tasks on behalf of users.
While the strategy is novel for a telecom provider, the underlying concept of tokenizing assets is gaining institutional traction globally. The model involves converting rights to an asset or service into a digital token on a blockchain, enabling fractional ownership, automated distribution of revenues, and easier transferability. According to a Deloitte report, the market for tokenized real-world assets is projected to grow from under $300 billion in 2024 to over $4 trillion by 2035.
“Tokenized real estate reaches institutional scale when the market stops treating tokenization as a gimmick and starts applying it to structures investors already understand,” Securitize CEO Carlos Domingo said in a written response. He argues the real opportunity is improving distribution and efficiency for institutional-quality assets, a principle that applies equally to China Mobile’s tokenization of its cloud and AI services.
The new strategy signals a fundamental shift for China Mobile from a traditional telecom operator to an integrated technology service provider. The company’s ability to execute this transition will be a key factor for investors. The next major catalyst will be the company's next quarterly earnings report, where investors will look for early indicators of capital expenditure and revenue from the new AI services.
This article is for informational purposes only and does not constitute investment advice.
