Banking News
- Construction Bank in leasing venture
Date: 11-Sep-2007 Sources: (Shenzhen Daily)
BANK of America Corp. and China Construction Bank (Construction Bank) will form a joint venture intended to provide leasing products in China, the world's fastest-growing major economy.
The proposed joint venture comes two years after Bank of America, the second-largest U.S. bank, paid US$3 billion for a 9 percent stake in Construction Bank, one of China's four big State lenders.
Bank of America will take a 24.9 percent stake in the leasing venture and Construction Bank will have a 75.1 percent stake. They expect the venture to launch early next year and be the first between a Chinese bank and a foreign investor to create a financial leasing company.
Chinese banking regulators have already approved the venture, they said in a statement yesterday.
The venture will at first focus on leasing new and used equipment and facilities to customers in China's power generation and transmission and rail industries. It will also provide and obtain loans, dispose of leased items and offer consulting services, among other activities.
Bank of America and Construction Bank previously teamed up in a venture offering free automated teller machine withdrawals and credit cards.
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