Bank of China prices offshore preference shares

The Bank of China has sold 6.5 billion U.S. dollars worth of offshore preference shares, the largest ever contingent capital deal in the world.

It also marks a milestone that a Chinese listed company has issued the preference shares, instruments that behave like bonds.

The yield will be put at 6.75-percent.

With the move, the bank is trying to bolster its balance sheets to meet new global bank capital rules.

Chinese banks are taking steps to replenish their balance sheets faced with slow growth and an increase in bad debts.

Since March, China's securities regulator has enforced new global capital rules which aim to ward off a financial crisis.