The Study On Legal Countermeasures Of Standardized Development Of China’s Sovereign Wealth Funds

The sovereign wealth fund serves as a government investment tool, which isindependent of the outside of the country’s foreign exchange reserves and foreignexchange surplus assets for the initial source of funds. In the fifties of last century,Kuwait first used their own foreign exchange assets set up specifically to invest instate-owned investment entities. However, such state-owned investment vehiclesdefined as “sovereign wealth funds” and extensive research began in2005. At present,sovereign wealth funds have become one of the important issues of concern in globalfinancial markets and financial regulators.As one of the world’s largest sovereign wealth fund owners and investmentdestination, China must face and solve a great many legal issues related to sovereignwealth funds. On the one hand, the investment company is the important one of thegoals for criticism and condemnation to the sovereign wealth funds, such asinformation disclosure, the operation of opaque and lack of standardization inregulation. On the other hand, in the domestic terms, the investment company lossescause a strong public criticism for its governance practices, risk management andinvestment strategies. How to ensure that China’s sovereign wealth fundsstandardization of health develops into an important issue. Moreover, a growingnumber of sovereign wealth funds have been or are about to enter our country. Whenour country as an investment in the host country, it is unavoidable to regulatecountry’s sovereign wealth fund to invest in China’s market. Therefore, thedevelopment of China’s sovereign wealth fund legal countermeasures should base onthe analysis and comparison of development and legal regulation system of domesticand foreign typical sovereign wealth funds. A profound analysis of the problem, withthe backdrop of the host country, investment in the mother country and internationallevel, will give birth to legal countermeasures on China’s sovereign wealth funds.With the perspective of the protection of national security and strategic industry, it isnecessary to explore legal countermeasures on review and regulation and get the keyto the standardization and development of the China’s sovereign wealth funds.