China Merchants Bank today opened a leasing unit in Shanghai, making it the fifth domestic bank that has such business on China's mainland.

China Merchants, the country's fifth-largest bank by market value, invested two billion yuan (US$286 million) to jump start the leasing business to offer aircraft and ship financing services.

Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications and Minsheng Bank started entering the leasing business in November.

CMB said it will mainly focus its business on medium and small companies in the Bohai Sea Economic Region in northern China and the Yangtze Delta Region in the east.

The bank has already signed cooperation deals with Sany Heavy Industry Ltd Co, Shaanxi Coal & Chemical Industry Group Co and Yunnan Huaneng Lancang River Hydropower Co.

China's budding leasing business may help meet strong demand for ships and planes as the country's economy continues to grow quickly.

Over the past 10 years, China's demand for planes has doubled while about 90 percent of the financing for plane leases on the mainland are provided by foreign companies.

The nation's commercial aircraft fleet will likely more than triple to 4,000 planes by 2020 from 1,039 at the end of last year, according to the General Administration of Civil Aviation.