China's securities regulators Wednesday approved the Agricultural Bank of China's (ABC) initial public offering application as the lender finalized preparations for its dual listing in Shanghai and Hong Kong.

The China Securities Regulatory Commission (CSRC) Public Offering Review Committee made the announcement Wednesday afternoon after it reviewed the bank's application Wednesday morning.

The bank is yet to decide its share price range. Analysts believe it will be in the 2.5 yuan to 2.6 yuan range for A-shares because of recent market volatility.

According to the preliminary prospectus submitted to the CSRC, the ABC plans to sell up to 22.24 billion A-shares on the Shanghai Stock Exchange and up to 25.41 billion shares in Hong Kong, excluding an over-allotment option.

"The performance of the financial sector will not be influenced much by a single bank's IPO plan. Instead, it is affected by the overall development of the economy," said Zhao Xijun, deputy dean of the School of Finance, Renmin University of China.

"Setting a reasonable price for the ABC's share is fairly important for the healthy development of the stock market. In the long run, the way ABC manages the challenges of its businesses related to agriculture will be looked at closely by the market," said Zhang Jing, an analyst with China Minzu Securities.

"The central government has been promoting rural development and is sparing no effort in lifting farmers' income. By providing preferential tax and other policies, the ABC has great potential to further develop its businesses in rural areas," said Guo Tianyong, professor with the School of Finance of the Central University of Finance and Economics.

The ABC, China's main rural lender, is the last of China's "big four" state-owned lenders to go public.