Bank of China (BOC) has gained approval to raise up to 100 billion yuan (about 14.5 billion U.S. 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.