COUNTRIES from five continents formally signed up to the China-led Asian Infrastructure Investment Bank (AIIB) at a ceremony in Beijing yesterday.

    Australia was the first country to sign the articles of association creating the AIIB’s legal framework in the Great Hall of the People, followed by 49 other founding members. Seven more are expected to do so by the end of the year.

    The bank will have a share capital of US$100 billion, with US$20 billion paid in initially.

    The articles of association promise the bank will “be guided by sound banking principles in its operations” and “ensure that each of its operations complies with the bank’s operational and financial policies, including without limitation, policies addressing environmental and social impacts.”

    The articles specify that the bank’s president must come from the Asia region and will serve a maximum of two consecutive five-year terms.

    President Xi Jinping said the signing of the agreement is a historic step forward in building the China-initiated multilateral bank.

    China will be by far the largest shareholder at about 30 percent, the articles of association posted on the website of China’s finance ministry showed. India is the second biggest at 8.4 percent with Russia third on 6.5 percent.

    The voting structure gives smaller members a voice and a statement accompanying the articles said China will have 26 percent of the votes. The share is not enough to give China a formal veto over the bank’s decision-making, but it will still have a big say.

    Among non-Asian participants, Germany is the largest shareholder with 4.5 percent, followed by France with 3.4 percent and Brazil with 3.2 percent.

    Proposed by Xi in October 2013, the AIIB is expected to go into operation later this year and its headquarters will be in Beijing.

    (Xinhua)