| The rising of sovereign wealth funds(SWFs) is caused by global economic growth and accumulation, which is also the requirement of long-term economic development, especially in East Asia. Because foreign exchange reserves(FER) management problems caused by the huge amounts have existed for a long time in East Asia, and the theoretical and Empirical Analysis results show that the the negative influence caused by growing FER can not be ignored by East Asia governments. East Asia has been at disadvantage position in the international industrial structure, the international monetary system and international financial markets, which is also the root cause of FER continuous accumulation. As the global economic structure can not be changed in the short time, to completely solve the FER management problems, East Asia government must seek new management methods. Sovereign wealth funds(SWFs) are formally based on such opportunities.SWFs in East Asia are common in origin and management. Mostly SWFs in East Asia origin from FER and own huge capital scale. According to comparative analysis of management and operation, deep goverament background and low transparency are the basic characters of main SWFs in East Asia. Furthermore, the macro effects of SWFs in East Asia are obvious. To improve industrial instruction, promote international financial system and enhance international trade arrangements, SWFs in East Asia have important implications. As occupying a part capital of FER, SWFs accordingly reduce the pressure of domestic money supply in establishment country. Meanwhile SWFs put positive effects on industrial instruction through domestic strategic investment. However, the impact of SWFs on the domestic finance is relatively not obvious because of defect of profit distribution. SWFs play the positive role to support and stable financial system in economic development, but also cause financial protectionism in investment country. The operations and international investment distributions of SWFs have direct and indirect positive impact on the international industrial structure, the monetary system and financial markets.According to above conclusions, this paper makes rational forecast of long-term development of SWFs in East Asia. On one hand, considering existed defects and increasing power of international supervision, SWFs in East Asia should continue to improve institutional weakness, heading to independent and transparent company structure. On the other hand, SWFs in East Asia should participate in formulating international regulations, making use of region culture cohesion and striving for long time interests in groups. |
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