China: Countries gather for AIIB signing ceremony

BEIJING

 Delegates from 50 countries worldwide converged on Beijing on Monday for a signing ceremony for the Asian Infrastructure Investment Bank (AIIB).

State news agency Xinhua reported that a total of 57 prospective founding countries' delegates are expected to eventually sign a 60-article agreement, which determines the China-led international financial institution's capital and each signatories' share.

According to a statement by Singapore's Ministry of Finance, 50 of the 57 countries inked the document Monday, including Turkey.

The AIIB is not expected to start operation until the end of 2015, during which time those still to sign up are expected to have completed "domestic procedures," reported Xinhua.

The bank - designed to provide financial assistance for infrastructure projects in the Asia region - has five chief shareholders: China with 26.06 percent, India with 7.5 percent, Russia with 5.92 percent, Germany with 4.15 percent and South Korea with 3.5 percent.

Turkey, meanwhile, has 2.6 percent of the shares, according to the AIIB website.

On launch, the bank will have authorized capital of $100 billion, and Asian countries will contribute up to 75 percent of the total and be allocated a share of the quota based on their economic size.

Notable countries missing from the list of signatories are the Japan and the United States, which has questioned its governance standards.

Meanwhile, Taiwan and North Korea's applications have been turned down.

In an article published in the state-run China Daily last week, Chinese Finance Minister Lou Jiwei said the bank "would show zero tolerance towards corruption and fraud, and enforce rigorous policies and regulations to uphold integrity."

When up and running, the AIIB is expected to rival the Asian Development Bank and World Bank.