In December 28, CCB Financial Leasing Corporation, a joint venture between CCB and Bank of America, was opened for business in Beijing.  The opening ceremony was attended by CCB chairman Guo Shuqing, CCB president Zhang Jianguo, CCB Financial Leasing Corporation chairman Kong Yongxin, CCB Financial Leasing Corporation president Wu Jianhang, officials from the State Development and Reform Commission, Ministry of Railways, Ministry of Communications, People’s Bank of China, State Administration of Foreign Exchange, Beijing Municipality as well as representatives from large enterprises in power generation, aerospace, shipping and finance.

Among bank-related leasing companies that are already established or being established, CCB Financial Leasing Corporation is the only one involving a foreign commercial bank as a joint venture partner, so its establishment represents another new achievement in the opening up of China’s financial leasing sector.  CCB’s cooperation with the Bank of America (BOA) in setting up a financial leasing company is yet another major cooperation between the two parties since BOA became a major CCB shareholder in 2005.  As well, it symbolises a more entrenched and extensive stage of their strategic cooperation.

CCB Financial Leasing Corporation is set up by CCB and BOA on a 75.1 to 24.9 share basis with RMB4.5 billion in registered capital and with its registered address in Beijing.  It is currently the largest financial leasing company in China in terms of registered capital and is also one of the first batch of innovative financial leasing companies approved for business by China Banking Regulatory Commission.

CCB chairman Guo Shuqing said that the setting up of CCB Financial Leasing Corporation and the launching of professional operations in the field of financial leasing will enrich CCB’s financial product profile, meet customer demands in financing and wealth management, promote the development of China’s financial leasing market and further enhance CCB’s overall competitiveness.  As a shareholder of CCB Financial Leasing Corporation, CCB is in possession of an excellent brand image and considerable influence.  As “the Most Profitable Bank in Asia”, it has established the most advanced risk management system in China, amassed an extensive customer base and developed outstanding marketing capabilities.  BOA, on the other hand, has an enormous technical advantage and has rich experience in the global leasing market.  This new company will exploit the status of Beijing as a political and cultural centre and the domestic and global advantages of its shareholders in brand recognition, channels, capital and human resources.  It will provide professional financial leasing services both within and without China.  In addition to aeroplanes and ship, it is targeting the leasing of large-scale fixed assets and equipment for manufacturing industries like railways, power generation, engineering machinery, petroleum and petrochemicals.  It will also design related financial products to meet individual customer requirements and will also diversify into various innovative businesses such as securitisation and economic consultancy services, etc.  CCB Financial Leasing Corporation will endeavour to develop into a financially strong, well managed, creative and dynamic international company through the integration of its own advantages and by continuously expanding market, innovating products and strengthening cooperation with other leasing companies and financial institutions.

Industry insiders are of the opinion that the establishment of CCB Financial Leasing is very significant to the Chinese financial market in driving the development and growth of the leasing industry to catch up with and surpass international standards.  For CCB, developing leasing business is an effective measure in enriching its financial services and will not only further strengthen its capability in providing comprehensive and integrated services to its customers, but will facilitate the further expansion of its customer base and the leasing market, in improving its business and profiting structures and in realising diversification of its operations.  For CCB customers, the new financing channel and the financial convenience that comes with leasing arrangements will bring them more benefits.