China to retain veto power in new lender

Voting structure gives nation an upper hand in major decisions on AIIB operations, say reports

China will retain "veto power" over major decisions by the Asian Infrastructure Investment Bank but relinquish that for day-to-day decisions, as part of Beijing's broad-based efforts to build a lean, efficient lending institution, according to media reports.

The nation has gained between 25 and 30 percent of the total votes of the emerging multilateral lender, which give it the power to block major motions involving structure, membership, capital increases and other significant issues that require a "super majority" of at least 75 percent of votes, both The Wall Street Journal and Reuters reported, claiming they had viewed the draft articles of association.