| Sovereign-wealth funds emerged in 1950s at first, but became truly flourish after 1990s, especially since the 21 century. At present, sovereign-wealth funds mostly come from finance surplus of the nation, foreign exchange reserves, and natural-resource income. The funds are invested into domestic and overseas markets by these nations for macro-economy purpose to keep financial stability, capital appreciation or long run development. However, as the transparency of these governments is low generally and their sovereignties are high-risk and high-reward, those developed countries which are the main investment receiving states begin to find help under "investment protectionism" once again. Then, the supervision of sovereign-wealth funds becomes the focus which every nation and international community concern with and argues.The existence of market risk, political risk, operating risk and social risk urges the international community to reach a consensus. Bearing in mind that supervision on sovereign-wealth funds is very necessary, they all insist on a market-based system and the supervision mechanism which regards international cooperation as its platform. Meanwhile, as a "special" subject, it has practical significance and legal basis for sovereign-wealth funds to receive duplication of supervision both from mother country and recipient country of foreign investment. At present, most of the states have set up related national legislations in order to conduct effective supervision on sovereign-wealth funds through their norms of establishment, governance structure, information disclosure, and risk control. In contrast, recipient counties of foreign investment usually conduct their supervision on sovereign-wealth funds by privacy laws of company law and securities act as well as public laws of national security audit and admission of foreign investment. However, as privacy laws protect personal interests and public laws are too strict, it causes investment protectionism which makes the supervision of recipient country inefficient. As sovereign-wealth funds mainly belong to international investment, international supervision and corporation become inevitable. American becomes the first to sign "Washington Accord" with the two largest sovereign-wealth funds in the world. Later on, European Union, OECD, and International Monetary Fund all achieve some accomplishment continuously. Nevertheless, these conventions are not international laws generally, so international supervision and corporation still have a long way to go.Our country established China Investment Corporation on September,2007, which has become the biggest sovereign-wealth funds in Asian and the fifth in the world. However, those problems left after its foundation have brought many challenges to our present supervision system. It has become an urgent task now to improve related laws and regulations, improve corporate governance structure and information disclosure system, and establish risk prevention mechanisms. Meanwhile, with the sustained and stable development of the national economy as well as the good investment environment, our country attracts abundant investment of foreign sovereign-wealth funds. Therefore, it's imperative to improve legislation of national security audit and law for foreign investment as soon as possible. In addition, we should also be devoted to the laying down of multilateral supervision rules to make them meet the interests of our nation.
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