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The Asian Infrastructure Investment Bank (AIIB) is preparing for a significant expansion, with plans to establish new offices in Hong Kong and Singapore, according to individuals familiar with the matter. If finalized, this would mark the most substantial growth for the multilateral lender since it began operations in Beijing nearly a decade ago.
Sources, who requested anonymity due to the non-public nature of the discussions, said the bank is currently in talks with key stakeholders in both cities to facilitate the opening of the offices. The announcement could be made during the AIIB’s annual meeting in June, provided that host member agreements are successfully concluded with the respective governments, one person noted.
Launched by China as a strategic alternative to traditional financial institutions like the World Bank, the AIIB has increasingly sought to extend its footprint beyond Beijing in an effort to strengthen its ties with global capital markets. The bank inaugurated its first international office in September 2023 in Abu Dhabi, the capital of the United Arab Emirates.
The initiative to open offices in Hong Kong and Singapore is part of the bank’s broader strategy to enhance its international presence, especially after challenges during the Covid-19 pandemic. With China’s strict border controls in place during that period, the AIIB encountered difficulties in managing overseas projects and attracting talent to relocate to its Beijing headquarters.
Since its inception in 2016, the AIIB has seen rapid growth, with its membership more than doubling to over 100 countries. Notably, the United States and Japan chose not to join the institution, expressing concerns over potential Chinese dominance. However, several Western allies, including European nations, Canada, Australia, and New Zealand, opted to become members.
A spokesperson for the AIIB commented that the bank is “exploring options for potentially opening a small number of additional hub offices in Asia and elsewhere,” though they emphasized that “no final decisions have been made” at this stage.
At the end of last year, the AIIB reported assets exceeding $57 billion, reinforcing its position as a key player in international development finance. The proposed expansion into Hong Kong and Singapore underscores its ambition to operate more effectively in global markets and improve accessibility for partners and clients across the region.
