Wheels in motion for new Asian investment bank

The fundamental mandate of the AIIB is to promote Asian economic development and regional economic cooperation by providing financing in infrastructure and other productive areas in Asian countries.

"If conditions become ripe, it may also expand its business beyond the region," Lou said.

He explained that AIIB's authorized capital will be paid by its members in installments and may grow following future business expansion, while "the final capital sizes and shares of various parties shall be settled by the AIIB founding members through consultation and negotiations."

In addition, as a new regional MDB, the AIIB has different priorities and focuses compared to the existing MDBs.

"The AIIB will mainly focus on infrastructure construction in Asia to promote regional connectivity and economic cooperation. The existing MDBs, such as the World Bank and the Asian Development Bank, meanwhile put their priorities more on poverty reduction," Lou said.

In view of the huge financing gap in the infrastructure sector, due to differentiated mandates and priorities, the relationship between the AIIB and existing MDBs will be complementary and cooperative rather than competitive, the minister added.

Lou said China will promote cooperation between the AIIB and the existing MDBs so as to jointly advance the sustainable and stable development of Asian economies.

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