BUSINESS Bank of China approved to raise up to 100 bln yuan via preference shares

BUSINESS

Bank of China approved to raise up to 100 bln yuan via preference shares

CGTN

04:23, June 12, 2019

190611-28.jpg

(Photo: CGTN)

Bank of China (BOC) has gained approval to raise up to 100 billion yuan (about 14.5 billion US dollars) through the sales of preference shares.

The China Banking and Insurance Regulatory Commission has approved the bank's plan to issue no more than one billion preference shares in the domestic market, the Bank of China said in a statement filed to the Shanghai Stock Exchange.

Earlier data showed that the non-performing loan ratio at BOC was 1.42 percent by the end of 2018, down 0.03 percentage points from the end of 2017.

Preference shares, along with common shares, are two primary types of stocks that companies offer to investors. Preference shareholders have priority rights over ordinary shareholders in the distribution of profits and residual assets.

Unlike common shares, preference shares function more like a bond. They are rated by major credit-rating companies and their prices are affected by changes in interest rates.


Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue