The Role Of Sovereign Wealth Funds In Global Economic Fluctuation And Change Research

Sovereign wealth fund is a special fund established by government using the money from a specific tax and budget allocation, natural resource revenues or the balance of payments surplus. The sovereign wealth fund is an investment agency, in accordance with the market-oriented way of operating sovereign wealth.With the development of sovereign wealth funds, the Western countries departed into two different sides. Some countries believe that sovereign wealth funds can act as stabilizers in the financial turmoil. The country use sovereign wealth funds to stabilize their financial so that saving their national capital meanwhile reducing the volatility of financial markets. Others felt that the operating strategies of sovereign wealth funds lack of transparency, what they fear is that China, Russia and other countries use sovereign wealth funds to control their high-tech, resources and military enterprises. They views result in the rise of "financial protectionism".However, in the2008financial crisis, because of the substantial decline in financial asset prices in developed Western countries, which directly led to the assets of sovereign wealth funds in2008, has shrunk dramatically. The current phenomenon of the sovereign wealth funds, not only change the attitude of the Western developed countries, but also change sovereign wealth funds their own investment strategy.with the rapid economic development and increasing foreign exchange reserves, China’s sovereign wealth fund is facing the challenge of how to manage surplus foreign exchange reserves and how to avoid the substantial loss of investment in Blackstone and other issues. Taking into account the new round of international investment boom, the Chinese sovereign wealth fund have a huge investment opportunities and risks and challenges. In this paper, we discuss the change of the attitude of sovereign wealth funds from the host government on the changes of sovereign wealth fund investments, as well as the private investment’s opinion on sovereign wealth funds.so in the new international financial situation changes, China’s sovereign wealth fund should take appropriate strategies to deal with this new situation.