China Mobile and Taiwan's Far EasTone Telecommunications may seek new ways to set up a joint venture on the mainland to sell mobile applications, according to Douglas Hsu Shu-tong, the chairman of Far EasTone. The news on a proposed joint venture came on the heels of Far EasTone shareholders' approval on Tuesday of the disposal of 444 million new shares to China Mobile at NT$40 (HK$9.42) each. The plan is part of the strategic alliance between the two companies. 'The setting up of the joint venture will be the second step in the China Mobile-Far EasTone alliance, after China Mobile successfully wins the regulatory approval to take a stake in Far EasTone,' Mr Hsu said after the general meeting of Asia Cement (China) Holdings. 'Our plan is to initially use the net proceeds from China Mobile to fund the joint venture. But we may discuss other ways of setting up the joint venture, as that is much more important for us.' China Mobile and Far EasTone entered into a strategic alliance in April. It was agreed that China Mobile would subscribe to Far EasTone shares and the two companies would set up a joint venture to enter the fields of mobile applications and value-added services. China Mobile will hold a 51 per cent stake and Far EasTone a 49 per cent stake in the joint venture. 'We hope the joint venture will help Taiwanese software companies to enter the much bigger mainland market,' Mr Hsu said. He said the next step would be for China Mobile to apply to set up a Taiwan-based company to handle its investment in Far EasTone, which is subject to approval by the Taiwan government. He was confident the transaction would be concluded by the end of this year. 'The Taiwan government is busy working on the rules regarding mainland companies investing in the island,' Mr Hsu said. 'There are no rules in this area, not only in telecommunications, but in the banking sector as well. The regulatory framework is lagging the existing market situation. They are now working on it.' China Mobile shares fell 0.77 per cent yesterday to HK$77.20.