China and several Latin American countries set up a multilateral financial cooperation mechanism Monday.

Proposed by the China Development Bank (CDB), the mechanism is the first of its kind between China and Latin American countries.

It involves seven developmental financial institutions based in Argentina, Ecuador, Mexico, Peru, Panama and Colombia.

The move aims to further strengthen the relationship among the institutions and facilitate multilateral cooperation, said Zhao Huan, Chairman of the CDB.

The CDB has so far offered more than 100 billion U.S. dollars of loan support for projects in 18 Latin American countries and regions, effectively boosting the economic ties between China and Latin America.