World Bank gets a rival - Formal framework signed to establish Asian Infrastructure Investment Bank

(Photo: I.Vukša)

Australia was the first country to sign the articles of association creating the AIIB's legal framework at a ceremony in Beijing, followed by 49 other founding members, AFP reports.

Seven more (Denmark, Kuwait, Malaysia, Philippines, Poland, South Africa and Thailand) are expected to do so by the end of the year.

The bank will have a share capital of $100 billion, with $20 billion paid in initially.

- The official signing is an embodiment of the concrete action and efforts made by all countries in the spirit of solidarity, openness, inclusion and cooperation. Now we are willing to listen to your views and proposals - Chinese President Xi Jinping said after the ceremony.

Beijing will be by far the largest AIIB shareholder at about 30 percent, India is the second biggest at 8.4 percent with Russia third on 6.5 percent.

The idea to establish AIIB came from China, and the first memorandum for this project was signed October 2014 by India, Laos, Singapore, Qatar and others.

The AIIB has been viewed by some as a rival to the World Bank and Asian Development Bank, and the United States and Japan have notably declined to join.