The SCO expanded last year with the acceptance of India and Pakistan as full members. Chinese President Xi Jinping stressed the importance of their presence at the summit, and that China was ready to financially back the organization's strategic goals. CGTN's Zou Yun has more.

The SCO has been a comprehensive regional organization since its foundation.

This year, India and Pakistan are making their full debuts at the annual summit as formal members.

This morning, Chinese President Xi Jinping said the organization needed to take advantage of the enlargement whilst addressing the leaders of the bloc.

XI JINPING CHINESE PRESIDENT "The inclusion of India and Pakistan has provided fresh vitality to this organization and it has also opened up new space for cooperation. We need to further deepen unity and mutual trust, step up our mutual support and ensure that the potential and opportunities brought about by the enlargement will be translated into tangible deliverables."

This year's host city, Qingdao has a special relationship with the SCO.

A strategic port at the end of the Belt & Road route, the Chinese government decided it would install the country's first demonstration area there as it looks to promote more economic and trade activity within the bloc. And President Xi said China would do all it could to ensure its success.

XI JINPING CHINESE PRESIDENT "The Chinese government supports the opening of a demonstration area in Qingdao for China-SCO local economic and trade cooperation. It will set up a committee of legal services for SCO member states to support business cooperation. In conjunction with this, I hereby announce that China will establish a special lending facility – worth 30-billion RMB -- within the framework of the SCO Inter-bank Consortium."

Indian Prime Minister Narendra Modi held an informal meeting with President Xi in Wuhan in late April when both leaders agreed to put their differences aside and concentrate on their common interests.

He also spoke at the leaders meeting in Qingdao.

NARENDRA MODI INDIAN PRIME MINISTER "This year's SCO summit holds special significance for India, because it is for the first time that we are participating as a full member. This is indeed a priceless opportunity for us to promote the various elements of the Shanghai Spirit, along with other SCO members."

ZOU YUN QINGDAO "The SCO countries have been working hard to make India and Pakistan's integration into the mechanism as smooth as possible. It's hoped these latest measures will guide the bloc into a new era of cooperation and development. ZY, CGTN, QD, Shandong Province."