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China-Led Development Bank Holds Signing Ceremony

Russian Deputy Finance Minister Sergei Storchak leaves after signing an article of association to help set up the Asian Infrastructure Investment Bank (AIIB) during a ceremony at the Great Hall of the People in Beijing on June 29.

China has held the signing ceremony of the Asian Infrastructure Investment Bank (AIIB), a new international financial institution that will rival the World Bank and Asian Development Bank.

Representatives from 57 countries on June 29 met in Beijing and signed documents that define each member's share and the AIIB's initial capital.

China will provide about 30 percent of AIIB's initial capital, and have a 26 percent voting share. India is providing 8.4 percent to the capital, and Russia is the third-largest contributor with 6.5 percent.

Australia, Britain, Germany, and South Korea are among the founding members.

The United States and Japan are the most prominent countries not to join.

Washington has questioned the governance standards at the AIIB, which it sees as spreading Beijing’s "soft power." Washington lobbied European allies not to participate, but many of them have done so in order to boost ties with China.

The AIIB, which was created in October by 21 countries, will fund energy, transport, and infrastructure projects in Asia.

The AIIB, which will have billions of dollars to lend, is expected to go into operation later this year.

Based on reporting by AFP and BBC