China's Foreign Exchange Assets, Strategic Configuration Issues Research

Strategic asset allocation is mainly referred to the investment subject who is to determine a single asset holding ratio in the long-term allocation pool, in order to achieve risk-adjusted returns maximization from the asset allocation pool. Foreign currency assets strategic configuration is that the underlying assets of foreign assets should be configured to determine the scale in the long-term period, aiming at achieving long-term benefits maximization from the whole exchange assets allocation. Along with the constant expansion of foreign assets, how to manage the foreign exchange assets also becomes more and more difficult, and how to implement the strategic allocation of foreign assets is a challenging historical mission.The research has found that there are many problems in the foreign exchange asset current allocation, they are as follows:Firstly, the monetary structure of asset allocation is single. What's more, the proportion of financial asset allocation is higher than goods, and the ranges of goods asset allocation is very narrow. At last, the dispersive risk ability of the allocation assets is weak. In order to solve these problems, this paper proposes that we should promote diversification of foreign exchange asset allocation, and the strategic reserves should be joined our foreign currency asset allocation pool which is put forward based on the non-ferrous metal industry needs.Although China's non-ferrous metal resources are rich and the small minerals are diversity, the backbone minerals are less. Nowadays, the consumption to copper,aluminum and iron has been ranked first in the world, but the resources of copper and aluminum are scarce, largely relying on imports, external dependence is more than 50%. The effective supply of copper and aluminum related to national economic security, the strong impact with international non-ferrous metals prices, China must passively accept international prices. Whether can guarantee future backbone mineral of effective supply or not is uncertainty, it will directly increase threat to our national security, therefore, it is significance with the reserves of non-ferrous metal in our country.Because the liquidity of non-ferrous metal is poor, and too much exchange asset is allocated to non-ferrous metal reserves that will influence on safety of foreign assets, so the good security mechanism should be established for non-ferrous metal strategic reserves. Therefore, this paper proposes non-ferrous metal reserves assets configuration mode, the method of making non-ferrous metal assets active, the tactics and advices of non-ferrous metal strategic reserves, etc, hoping to perfect the non-ferrous metal strategic reserves system better and better.