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On the occasion, President Mamnoon said that Pakistan supported the Chinese chairmanship of SCO and appreciated the various initiatives proposed by China in the organization during the a year ago.

China and India on Saturday settled a dispute over the flood-prone Brahmaputra river that flows from Tibet to Bangladesh in a sign of growing cooperation between them. "And both leaders made very positive assessment of the Wuhan summit", he said, adding both the leaders agreed to keep open the strategic communication.

India had said previous year that China did not stick to an agreement to share hydrological data, or scientific information on the movement and quality of water, for the Brahmaputra.

"In response to the president's suggestion for enhancing financial cooperation between the two countries and also helping trade, the Prime Minister conveyed to President Xi India's readiness to permit the Bank of China to establish its branch in Mumbai", Gokhale said. The next Modi-Xi meeting would take place in South Africa in July on the sidelines of the BRICS summit, he said.

External affairs minister Sushma Swaraj and her Chinese counterpart Wang Yi will head a new mechanism to oversee people-to-people contacts, and will soon meet to discuss details.

Modi is expected to hold almost half a dozen bilateral meetings with leaders of other SCO countries.

After their talks in Wuhan, Modi and Xi had chose to issue "strategic guidance" to their militaries to strengthen communications to build trust and understanding as part of efforts to avoid a Doka La-like situation in the future.

Asia Times anticipates this year's SCO meeting could be much more successful than the 17 previous outings because relations between Russian Federation and China have improved so dramatically.

Modi arrived in Qingdao on a two-day visit to attend the annual SCO summit.

SCO members include China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

The two leaders also agreed on increasing bilateral trade to $100 billion by 2020, and Xi said China is ready to enhance agricultural imports from India.

These moves are seen as attempts by India and China to bring ties back on an even keel after the 73-day-long tense military standoff between India and China a year ago over their unsettled boundary dispute.

However, there have been concerted efforts by both sides to reset ties leaving behind the Doklam episode. Therefore, connectivity with our neighbourhood and in the SCO region is our priority, PM Modi said.

The prime minister's comments at the Shangri-La Dialogue in Singapore were appreciated by China.

Xi welcomed India's attendance at the summit as a full member of the SCO for the first time, saying the Chinese side stands ready to work with India and other member states to carry forward the Shanghai Spirit and promote the sound and stable development of the SCO.