Rumors are circulating in local media that China Mobile (CHL) will invest CNY3 billion into China Datang Corporation in support of the Datang's TD-SCDMA construction.

Lu Xiangdong, vice president of China Mobile, and Li Shihe, deputy general manager and chief scientist from Datang, both say that they have not heard anything about this rumor, so they won't make any comment.

However, a top manager from a TD Alliance member company says that China Mobile has long wanted to invest in a manufacturing enterprise and make it an institution to support its research and development. The commercialization and industrialization of the TD industry would be greatly accelerated through China Mobile's investment.

At present, Datang's core assets include Datang Mobile, which is engaged in TD-SCDMA development and production; Datang Xinwei, which specializes in SCDAM; and Datang Telecom. Although the government has offered fund support several times to Datang, the company is still reportedly short of sufficient funds for its TD development.