(ChinaKnowledge, Oct 19, 2006) China Construction Bank, one of China¡¯s Big Four State-owned lenders, is working with partner Bank of America on a credit card to access China¡¯s rapidly developing market.

Discussions on the technical cooperation are still underway between the two parties who have yet to make a decision on how to start the partnership.

The Chinese bank is expected to tap Bank of America¡¯s expertise in corporate governance, product development, credit card, retail banking services and risk management. According to the spokesperson for the Beijing bank, the acquisition of MBNA, the world¡¯s biggest independent credit card issuer by Bank of America, will help strengthen the partnership¡¯s future credit card business.

Banks in the Mainland are fighting for the expanding credit card market with the growing middle-class. While credit cards have become one of the priorities in Standard Chartered¡¯s consumer banking sector, the Mainland¡¯s fifth biggest lender, Bank of Communications, recently launched a co-branded credit card with HSBC last July and have won more than one million clients since.   

Bank of America, the world¡¯s second-largest bank by market value, bought a 9% stake in China Construction Bank in June last year for US$2.5 billion and this latest initiative follows their strategic partnership.

The two banks have also just announced that they will jointly support the 2007 Special Olympics World Summer Games to be held in Shanghai. CCB will make a contribution to Special Olympics in exchange for sponsorship rights and benefits associated with the Games while Bank of America will make additional donations.

source:ChinaKnowledge