The Study On The Structural Optimization Of China's Foreign Exchange Reserve

Foreign exchange reserve, as the main form of international reserve, plays important role in developing economy stably of one country, whose change and development have always been the hot spots of economists' researches at home and abroad. Since 21 century, with reform and opening up gradually deepening and overall national strengths comprehensively rising, China's total amount of foreign exchange reserve has skyrocketed. After 2001, the annual growth rate of foreign exchange reserve has remained more than 20%, and by the end of 2007, China's balance of foreign exchange reserve had reached 1528.249 billon dollars and stayed on the top of the world. According to relevant data, more than half of China's foreign exchange reserve has been invested in U.S. long-term debt securities. Under the background of sustaining dollar depreciation, not only does the value of foreign exchange reserve confront serious exchange rate risks, but also there exists higher opportunity cost, and the whole rate of return is low. With world economic structure diversified nowadays, therefore, to adjust foreign exchange reserve structure and enhance its running efficiency have become the significant research subjects in the reform of foreign exchange reserve management system.The paper chooses China's foreign exchange reserve structure as research object. On the basis of analyzing the status quo of China's foreign exchange reserve as well as its management trend in the world, planning to combine foreign exchange reserve structure theory and portfolio management theory, it discusses, from the angle of investments, the currency combination of the optimum structure of foreign exchange reserve and the optimization of its assets allocation. In the discussion of currency types structure, the paper, according to the three principles of foreign exchange reserve currency types selection, combining with the practice of China's economic development, identifies the currency types of China's foreign exchange reserve, and adopts the mean-variance model of Markowitz's portfolio selection theory concluding the optimum foreign exchange reserve's currency types structures under different rates of return; in the discussion of assets structure, the paper, according to foreign exchange reserve's assets allocation principles, dividing the reserve assets into financial assets and non-financial assets, discusses several pragmatic paths of assets adjustment, and based on that it further discusses the appraisal problems of foreign exchange reserve's assets allocation, which bears positive significance to enhancing the assets yield of foreign exchange reserve and promoting the long-term development of China's economic construction.