The Study Of Sovereign Wealth Funds And Strategy Under The Global Financial Crisis

In the 21st century, the global economic is deepening and the oil price is rising. The foreign exchange reserves of the economies are, including emerging market economies and oil exporting countries, increasing rapidly in this background. With foreign exchange reserves continuing to increase, the sovereign wealth funds get a rapid expansion. The statistics of the international financial services consulting firm (International Financial Service) shows that the asset of the global sovereign wealth funds had reached 3.8 trillion U.S. dollars in 2009, exceeding the assets of the global hedge fund and private equity fund at present.In the nearly two years, the global economy has been in a serious financial crisis which is the same as the Great Depression. In a series of severe economic turmoil, the Sovereign Wealth Funds of emerging market economies have played a more active role. SWFs injected the huge capital to the big financial institutions of USA and EU, and then effectively eased the process of deleveraging in the capital market and enhanced the confidence of the global market. At the same time, in the developed countries, the fear and investment restriction about the sovereign wealth funds increase the uncertainty of the development of sovereign wealth funds.This paper reviewed the classic literature at home and abroad, then fully explained the related theories of sovereign wealth funds. In the background of financial crisis, it analyzed the evolution of this crisis and performance of the SWFs in this global financial crisis. Since then, the paper analyzed the underlying causes and main characteristics of the development of the SWFs in the new century in the long-term perspective. At last, on the basis of background and status of sovereign wealth fund of China, the paper analyzed the external environment of the SWFs after the global financial crisis, and provided some suggestions on the development of China's sovereign wealth.