What to do if you are the biggest player in the world’s biggest mobile market? The natural thing is not to spend $880m on a small stake in a small player in a small market.

China Mobile’s acquisition of an 18 per cent stake in Thailand’s debt-laden True Corp is strategically baffling. True is the number three player in a market with 140 per cent mobile penetration.

Yes, China Mobile needs to find growth. Its results last year were lacklustre as market share, voice revenues, margins and profits all dropped due to competition from both rival operators and internet chat services. Numbers for this year’s first quarter improved slightly but it is too early to call this a trend. Analysts are not convinced: earnings per share are expected to drop 14 per cent this year.