China and the World Bank reached an agreement to allocate $50 million to combat poverty, according to report by the China Daily.
The fund will finance investment projects, knowledge development and human-resources cooperation at the global and regional levels.
World Bank President Jim Yong Kim approved the trust fund and it is expected to begin operating later this year.
Kim arrived in China on Wednesday for a three-day visit and discussed issues concerning the global economy, development finance and health reforms.
Premier Li Keqiang stated that China is willing to strengthen its partnership with the World Bank and that the country is focusing on suggestions from a joint research from the bank and the World Health Organization (WHO) regarding health reforms.
"Over the years, China and the World Bank have cooperated closely," he further shared.
For Lou Jiwei, China's finance minister, the trust fund symbolizes a growing partnership with existing multilateral development banks even as China is supporting new ones.
In a gesture of confidence, Li also mentioned that the government is capable of managing risks in the field of economic development and maintaining a good level of growth.
The country gained a GDP growth figure of 7 percent for the second quarter.
"I look forward to a continued strong, cooperative and productive relationship," Kim said.
The World Bank president also met with the leaders of the Multilateral Interim Secretariat of the Asian Infrastructure Investment Bank to talk about further cooperation between the institutions.
Premier Li also met with Fijian Prime Minister Voreqe Bainimarama in Beijing.