BEIJING, Jul. 3, 2009 (Xinhua News Agency) -- China Daily on Friday quoted an industrial insider as saying that China Mobile Communications Corp. (CMCC), parent of China Mobile (0941.HK; CHL.NYSE), might buy equity stakes in the Industrial and Commercial Bank of China Ltd. (OOTC:BACHY) (OOTC:IDCBY) (OOTC:IDCBF) (ICBC), the biggest commercial bank of China.

It is reported that the move is encouraged by the country's top state asset watchdog, the State-Owned Assets Supervision and Administration Commission (SASAC) under the State Council.

ICBC is China's largest bank in terms of asset scale, and China Mobile is the world's biggest mobile phone carrier by users.

The report said that the negotiation between CMCC and SASAC is still in a preliminary stage.

The investment is a part of SASAC's efforts to encourage integration of industrial capital and commercial capital of state-owned enterprises with sufficient capital.