China's development lender AIIB plans to open Singapore, Hong Kong offices

The Asian Infrastructure Investment Bank (AIIB) is looking to open new offices in Hong Kong and Singapore, according to people familiar with the matter, in a plan that would mark its biggest expansion since beginning operations in Beijing almost a decade ago.

 

The multilateral lender, which had more than $57 billion in assets at the end of last year, is currently negotiating with relevant parties in the cities to open the offices, the people said, asking not to be named discussing non-public information. The bank may announce the move at its annual meeting in June if it can finalise the host member agreements with their respective governments, according to one person. Set up by China as an alternative to other international financial institutions such as the World Bank, the AIIB is increasingly seeking out a greater presence beyond its base in Beijing to get closer to capital markets. It opened its first overseas office in September 2023 in the United Arab Emirates’ capital of Abu Dhabi. 

 

During the Covid pandemic, when China effectively closed its borders, the bank found it hard to manage its overseas projects and faced challenges in getting people to move to Beijing to work at the headquarters. 

 

The AIIB has roughly doubled the number of member countries to over 100 since being established in 2016. While the US and Japan both declined to join due to concerns that the bank would be controlled by China, American allies in Europe — as well as Canada, Australia and New Zealand — all became members.

 

The Asian Infrastructure Investment Bank’s spokesman said the lender is “exploring options for potentially opening a small number of additional hub offices in Asia and elsewhere” but it hasn’t “made any final decisions.”   

Spreading wings

 

• Planning significant expansion by establishing presence in Hong Kong, Singapore
• Marks largest geographic growth since Beijing operations began
• Potential public announcement in June, at annual meeting if agreements are finalised
• Proximity to capital markets: Aims to be closer to global financial centres
• Strategic hub development: Exploring more “hub offices” in Asia