China Will Hold 30% Stake in AIIB

June 29, 2015 Share Print 0

China will hold a 30.34 percent stake in the Asian Infrastructure Investment Bank (AIIB), the Finance Ministry said on Monday, making Beijing the largest shareholder in a multilateral institution that will project the country’s growing soft power.

China will have 26.06 percent of the voting rights in the bank, a Chinese-led development bank that will rival institutions such as the World Bank and the Asian Development Bank.

Countries defined as “within the region” will hold a 75 percent stake in the bank, the ministry said in a statement on its website, as delegates from 57 countries gathered in Beijing to witness the signing of the articles of agreement for the bank.

Fifty countries signed the agreement, the ministry said, as the remaining seven – Denmark, Kuwait, Malaysia, Philippines, Holland and South Africa and Thailand – had not yet won domestic approval.

India will have the second-largest share in the bank, followed by Russia, Germany and South Korea based on their capital subscriptions, according to the statement.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.