China's biggest financial leasing company, a joint venture between China Construction Bank (CCB) and Bank of America, was officially established in Beijing on Friday.

 

CCB, one of the four big state-owned commercial banks, has a 75.1-percent stake in the 4.5-billion-yuan (US$616 million) venture, and Bank of America owns 24.9 percent.

 

"In addition to airplanes and ships, the new company will lease facilities for railway transport and power generation," a CCB official said. The venture will also issue bonds and provide interbank loans.

 

Also Friday, the Bank of Communications (BOCOM) Financial Leasing Company, with 2 billion yuan in registered capital, was set up in Shanghai. That company will focus on equipment leasing (aircraft, ships and construction equipment).

 

The Chinese Banking Regulatory Commission lifted a decade-long ban on commercial banks investing in financial leasing companies this March. China Merchants Bank and China Minsheng Banking Corp., Ltd. are preparing to set up financial leasing companies.

 

CCB's and BOCOM's stock prices fell 0.2 percent and 0.57 percent to stand at 9.85 yuan and 15.62 yuan, respectively, on Friday.

 

(Xinhua News Agency December 29, 2007)