Sept. 6 (Bloomberg) -- Bank of America Corp., the second- largest U.S. bank, will invest $150 million in a joint venture with China Construction Bank to lease power-generation and rail equipment in China.

Bank of America will own 24.9 percent of the venture, the Charlotte, North Carolina-based company said in a statement today. The two banks will finance leases through deposits, bonds and loans, and may branch into other businesses under the terms of an agreement approved by the China Banking Regulatory Commission.

Bank of America, which bought a 9 percent stake in China Construction in 2005, also has a joint venture in credit cards with the company. Bank of America is the largest U.S. card issuer.

``China Construction Bank already has the marketplace, while we have the leasing background,'' spokeswoman Eloise Hale said in an interview. The China leasing market ``is in its formative stages. We'll be able to leverage the potential.''

Shares of Bank of America fell 16 cents to $49.79 in composite trading on the New York Stock Exchange at 4 p.m.

To contact the reporter on this story: Joseph N. DiStefano in New York at jdistef@bloomberg.net.

Last Updated: September 6, 2007 16:09 EDT