Free Trade for the Future

The memorandum of understanding specifies that the authorized capital of AIIB will be $100 billion and the initial subscribed capital is expected to be around $50 billion. The paid-in ratio will be 20 percent.

AIIB will be an inter-governmental regional development institution in Asia. As agreed, Beijing will be the host city for AIIB's headquarters.

It is expected that the Prospective Founding Members will complete the signing and ratification of the Articles of Agreement in 2015 and AIIB will be formally established by the end of 2015.

Jim Yong Kim, President of the World Bank, said that AIIB would be a "welcome addition to the current situation" in light of the lack of funding for infrastructure in Asia.

Kim said he believes the World Bank will be highly capable of working well with the new bank.

Source: China.org.cn