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Xi made the appointments in line with decisions made by the Standing Committee of the NPC, China's top legislature.

"China will work with Bulgaria to grasp the opportunity and establish cooperation projects which are conducive for the two peoples," he said.

David Denoon, director of the Center on U.S.-China Relations at New York University, told Xinhua that a bigger role for market will benefit China's economy in several ways --including making it harder for government to subsidize inefficient projects, which will result in channeling resources toward efficient projects.

He saw the bank as an effective mechanism to ensure economic development and national security of SCO member countries.

Liu also demanded strict implementation of the "eight-point" anti-bureaucracy and formalism rule that was introduced at a meeting of the Political Bureau of the CPC Central Committee in late 2012, during the Chinese Lunar New Year holiday which begins on Jan. 31.