China-led Asian infrastructure bank opens for business

China is not now considering borrowing from its new worldwide development bank to bankroll domestic projects, the state-run People’s Daily said on Friday.

In a major development that moves towards revamping of the global financial architecture, Asian Infrastructure Investment Bank (AIIB) formally opened for business today.

“AIIB’s start is of particular importance in terms of reforming and improving global economic governance”, Xi said at the opening ceremony attended by 57 founding countries in Beijing.

Tsang said Hong Kong can leverage on its extensive experience and world-class professional services in the financing, planning and management of infrastructural projects to participate and support the work of AIIB, according to a statement released by the Hong Kong government. It will bring along a better investment environment and more job opportunities and trigger greater medium- to long-term development potential on the part of developing members in Asia. “This in turn will give impetus to economic growth in Asia and the wider world”. “It will provide a new inflow of large investment capital for endogenous, sustainable growth”.

It will also promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions, including the EIB and the EBRD.

Progress was made on that front last month when USA lawmakers approved changes to International Monetary Fund governance that will give a bigger voice to emerging-market nations including China and India.

While India had asked for a vice presidential post as second largest shareholder, it was ultimately decided that the post would be selected from candidates who apply, on merit. Japan is a notable absentee.

China’s Minister of Finance and AIIB’s first chairman Lou Jiwei stated that AIIB, which was founded December 25 a year ago, will be operated jointly with World Bank Group and Asian Development Bank (ADB). Diplomatic Coup Luxembourg Finance Minister Pierre Gramegna said the establishment of the AIIB was “further proof of the rebalancing of the world economy”.