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 Chinese 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 (600-million-U.S. dollars) 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.