Key legal framework laid for China-initiated AIIB

Delegates of the 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) on Monday gathered in Beijing for the agreement signing ceremony, which will lay the legal framework for the China-initiated multilateral institution.The 60-article agreement outlined the financial share of each member, policy making, business and operational systems, and governance structure. The AIIB is designed to finance infrastructure building in Asia. Australia was first to sign the agreement in the Great Hall of the People. The AIIB will have authorized capital of 100 billion US dollars. Asian countries will contribute up to 75 percent of the total capital and be allocated a share of the quota based on their economic size. China, India and Russia are the three largest shareholders, with a voting share of 26.06 percent, 7.5 percent and 5.92 percent, respectively. China does not seek a veto power in the bank, Vice Finance Minister Shi Yaobin said in an interview with Xinhua, adding that the country's stake and voting share in the initial stage are "natural results" of current rules, and may be diluted as more members join. The Beijing-headquartered bank will start operation at the end of the year under two preconditions: At least 10 prospective members sign the agreement, and the initial subscribed capital is no less than 50 percent of the authorized capital.