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BIZCHINA / Center
CCB to set up leasing company with Bank of America
(Xinhua)
Updated: 2007-09-08 15:56
China Construction Bank (CCB) said the country's banking regulators have
approved its plan to set up a financial leasing company with Bank of
America to provide leasing products for Chinese customers.
The approval came six months after the China Banking Regulatory
Commission lifted a decade-long ban on commercial banks investing in
financial leasing companies.
The new joint venture will be the first of its kind between a Chinese
bank and a foreign investor.
CCB, one of the big four State-owned commercial banks, will have 75.1
percent of the 4.5-billion-yuan (US$600 million) company, while Bank of
America will invest 1.12 billion yuan for a 24.9-percent stake.
"The new business will combine Bank of America's leading leasing and risk
management expertise with CCB's market strength," said a statement from
Bank of America.
The new joint venture, expected to be launched in early 2008, will cover
a wide range of businesses, including finance leasing, taking fixed
deposits from shareholders, issuing financial bonds and providing
interbank loans.
It will also obtain loans from financial institutions and foreign
exchange loans from overseas and provide economic consulting services.
Bank of America currently holds a 9-percent stake in CCB as a strategic
partner. Since 2005 the two banks have launched cooperation in consumer
banking, treasury services, governance and risk management.
(For more biz stories, please visit Industry Updates)
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