Four Chinese banks - the Industrial and Commercial Bank of China, the Bank of Communications, the Minsheng Banking Corporation and China Merchants Bank - plan to set up their own aircraft leasing companies, China''s state media agency said on Tuesday 18 September.

The banks want a slice of a growing pie that has so far been consumed mostly by foreigners. In the Chinese aviation sector, about 70 per cent of aircraft are leased, 90 per cent of which is through overseas companies. Given the numbers, it is entirely understandable why the banks want to set up their own companies, experts said.

The Industrial and Commercial Bank of China is the nation''s largest. Minsheng Bank is expected to invest Yuan3.2 billion ($425 million) in the new venture while the others are thought to be investing Yuan2 billion ($266 million) each.

The Chinese government is expected to approve the four leasing companies by year end or early next year, the report said, adding that more banks and financial institutions are likely to join if these prove successful.

The aircraft leasing business has been open to banks since new measures for the administration of finance leasing companies took effect on 1 March, allowing them to hold stakes in finance leasing companies.

European aircraft maker Airbus had said earlier this month it expected China to order 100 to 150 planes per year from the company over the next five years, to meet demand in its booming aviation market.

also see : General reports on Banks & Financial Institutions