Bank of America on Monday announced an agreement with China Construction Bank (CCB) on a memorandum of understanding to jointly enter into a new credit card collaboration aimed at providing innovative card products for the rapidly growing Chinese market.

"In the first stage, CCB would create a stand-alone credit card unit, merging its current card operations into this new unit," said a press release issued by Bank of America.

"CCB would also form an advisory committee to determine and develop the unit's business structure," it said. "Bank of America would serve on this committee and provide advisory services on the unit's development."

The second stage would involve converting the credit card unit into a Chinese-foreign credit card joint venture, registered in China. Bank of America would acquire 37 percent of the joint venture and would begin launching co-branded credit cards, according to the press release.

At the time of the second stage, both companies would have board of director representation and be a part of the company's senior management team.

The second stage would occur after new joint venture regulations are enacted by the Chinese government and subsequent regulatory approvals are obtained, the press release said.

"For Bank of America, this is a strategic collaboration in one of the fastest growing economies in the world," said Kenneth D. Lewis, Bank of America chairman and chief executive officer. "It allows us to deepen our alliance with CCB while also positioning Bank of America to participate in the market's future growth once new regulations are enacted.