Countries sign agreement on AIIB

The bank's board of directors will not be required to live in Beijing, and the chance to supply materials for projects will be open to all countries, not just members.

Though China will nominate its candidate for bank president－whom most members expect has the largest chance to win－China does not seek to monopolize the post, Beijing said.

Lou said that member countries are now being required to submit a list of projects.

He also said AIIB funds will take local people's willingness into consideration.

"The AIIB will learn from existing multilateral development banks' good practices, including respect for the willingness of the local population. In many cases, government wants a project while local people don't."

With the signing of the legal framework for the bank, experts said the focus is now shifting to how China can show its leadership in the bank, roll out the first project and fulfill its commitment of a "lean, clean and green" bank.

Wang Jun, a former financial expert for the World Bank, said the AIIB provides an "exercise" for China to hone its global governance skill. The success of the bank will be the "most convincing" example of the country's capability, he said.