Industrial and Commercial Bank of China (ICBC), the nation's
largest lender by assets, opened a wholly-funded financial leasing
firm in the northern city of Tianjin on Wednesday.
Analysts said the move would help ICBC diversify and get a share
of the nation's rapidly growing financial leasing business.
The firm has registered capital of 2 billion yuan (270.6 million
U.S. dollars) and is located in the Binhai New Area of Tianjin, a
locality known for financial innovation in China.
Yang Kaisheng, president of ICBC, said that the establishment of
the leasing company was a major development in ICBC'S
diversification.
The firm will mainly lease ships, aircraft and large
equipment.
It will also provide asset management and industry investment
counseling for domestic and overseas customers, Yang added.
ICBC is already China's largest source of aircraft financing and
one of the largest ship financing banks.
During the opening ceremony, ICBC signed cooperation deals with
the China National Aviation Holding Company, Hainan Airlines, and
the China Ocean Shipping (Group) Company.
The China Construction Bank, Bank of Communications, China
Merchants Bank, and China Minsheng Banking Corp have also won
regulatory approval to open financial leasing firms.
In March, the China Banking Regulatory Commission lifted a
decade-old ban on commercial banks investing in financial leasing
companies.
(Xinhua News Agency November 29, 2007)
