China Mobile (HKG:0941, SHA:600941) said its Guangdong Mobile unit has converted Shanghai Pudong Development Bank (SHA:600000) convertible bonds worth 1.87 billion yuan into about 149.8 million A shares, according to an Oct. 17 bourse filing.

Hong Kong-listed shares of the telecommunications giant gained 1% in Monday morning trade.

The bonds were converted at 12.51 yuan per share, lifting China Mobile's stake in SPD Bank to around 18.15% from 17.80%.

The company said the move will help strengthen SPD Bank's capital base while allowing China Mobile to further share in the lender's financial performance.

The converted shares will be subject to a five-year lock-up period under Chinese banking equity regulations.