Beijing
Two paramilitary policemen stand guard under red flags on the roof of the National Museum in BeijingReuters

The headquarters of the Asian Infrastructure Investment Bank (AIIB) will be in the Chinese capital, according to China's vice finance minister Shi Yaobin.

As reported by Xinhua news agency, Shi noted that the signing parties of the memorandum of preparation for the AIIB have unanimously agreed to setting up AIIB's headquarters in Beijing.

As the initiator of the AIIB, China will be the standing chairman for the delegate meeting after the bank is founded.

The minister also said China is willing to cooperate with existing multilateral organisations such as the World Bank and the Asian Development Bank.

Indonesia's finance minister earlier said his country will seek to host the headquarters for AIIB.

In October 2014, representatives of 21 Asian nations convened in Beijing to inaugurate the AIIB, which is focused on providing funding to infrastructure projects within Asia. The bank was initially capitalised with $50bn (£31bn, €39.5bn), half of which was funded by China.

Britain became the first major Western country to apply to be an AIIB founding member, and was followed by major European nations France, Germany, Luxembourg, Switzerland and Austria.

The decision of the countries comes despite warnings from the US over the AIIB's governance and environmental standards. The AIIB has attracted over 35 countries which have joined or may join the bank.

The infrastructure investment needed in Asia Pacific is estimated to be around $8tn during 2010-2020, according to ANZ Bank.

"As a multilateral development bank, the AIIB would potentially use the best practice to build infrastructure in the most efficient way for developing economies," ANZ analysts said in a research note.

"The AIIB will not only introduce Chinese technology and expertise but also bring more transparent and well-developed practice and policies from advanced economies. If done right, the rise of the AIIB could offer a new approach for Asia's infrastructure financing," the statement added.