BEIJING - China Minsheng Banking Corp (CMBC) has been approved to issue a perpetual bond worth no more than 40 billion yuan ($5.88 billion), according to the China Banking and Insurance Regulatory Commission (CBIRC).

It was the first perpetual bond ever issued by a Chinese joint-stock commercial bank, and the People's Bank of China will conduct a central bank bills swap (CBS) operation to support CMBC's issuance of the bonds, CBIRC said.

The issuance of the bond will lift up the quality and adequacy ratio of the capitals in commercial banks, and help ward off the financial risks, said the CBIRC.

It will also make the commercial banks better serve the real economy and strengthen their innovation in tools to expand channels for capitals and optimize the capital structure, the CBIRC noted.

On Jan 28, the Bank of China issued the country's first perpetual bond worth 40 billion yuan in the interbank bond market with no maturity date and a nominal interest rate of 4.5 percent.