Bank of America mulls China expansion

China is premiere destination as US lender broadens business abroad while local operations lag behind rivals.

Bank of America Corp. plans to seek approval from China to expand its operations in the fast-growing country, where the largest U.S. bank in assets lags many of its rivals, according to people familiar with the situation.

The Charlotte, N.C., bank entered China in 2004 with a branch in Shanghai and has since received approval to handle limited forms of lending and investment banking. Bank of America also holds a minority stake in China Construction Bank Corp., the second-largest bank in China.

Bank of America executives are discussing the need to incorporate locally in China, these people said. It isn't clear how much capital the bank is seeking to inject into the unit, although Beijing requires a minimum of one billion yuan ($146.59 million) in registered capital. Nor is it clear how the bank would use its new powers if approved, though people familiar with the matter said Bank of America more likely would pursue commercial business, rather than the retail banking that is one of its strengths in the U.S.

View the full story in the Wall Street Journal.