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Message| (2,111)    Shares of the biggest telecommunication
company in China, China Mobile (CHL), have gained over 2% since
the announcement that the company added 3.71 million 3G
subscribers to its network. The current financial year is
proving to be a year of rapid 3G adoption in China and it can be
seen in the latest numbers released by the three telecom
companies in the country. We believe this rapid adoption of 3G
in China and the relatively lower but rapidly rising smartphone
penetration in the country will lead to growth in top line as
well as earnings, because more subscribers are switching from
the traditional use of mobile device to data usage. Therefore,
we identify the rapid 3G adoption, higher data usage by
subscribers and rising smartphone penetration as key catalysts
for the company's stock price that has already gained over 18%
so far this year. We believe it has a further upside potential
based on its cheap valuations (11x vs hi