China launches Asian Infrastructure Investment Bank (AIIB)Friday Oct 24,2014

Australia, Indonesia and South Korea skipped the launch of a China-backed Asian infrastructure bank on Friday Oct 24,2014 as the United States said it had concerns about the new rival to Western-dominated multilateral lenders.


The AIIB, launched in Beijing at a ceremony attended by Chinese finance minister Lou Jiwei and delegates from 21 countries including India, Thailand and Malaysia, aims to give project loans to developing nations. China is set to be its largest shareholder with a stake of up to 50 %


China's proposed $50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both multilateral lenders that count Washington and its allies as their biggest financial backers


The AIIB is expected to begin operations in 2015 with senior Chinese banker Jin Liqun, ex-chairman of investment bank China International Capital Corp, expected to take a leading role.

China's President Xi Jinping (C) poses for photos with the guests at the Asian Infrastructure Investment Bank launch ceremony