| With the globalization and integration of world economy, the amount of foreign exchanges of counties increases rapidly. In order to increase income of the foreign exchange asserts, sovereign wealth founds have been established in different countries. As one of the methods to maximize income of common wealth and conducted by governments, SWFs’developments expand a new way to manage foreign exchange surplus. Due to their huge scale and significant of sovereignty, the rise of SWFs consequently attract many attentions. After the2008financial crises, financial stability has become a popular topic again. Although it is a truth that SWFs have played an important role in the nearest financial crises, the long-term impact of SWFs on financial market stability is still in discussion. Therefore research on this matter seems to be meaningful and necessary.With the background of world economy imbalance and irrational monetary system, SWFs are established to reduce price fluctuation and improve the efficiency of foreign-exchange assets management. By researching the impact of SWFs on financial assets prices, foreign-exchange rate fluctuation and major financial institution can demonstrate that SWFs will not threat the stability of financial market. On the contrary it is helpful to stabilize financial market with their "Buy and Hold" investment strategy and "Anti-cycle Adjusting" mechanism. This dissertation provides more theoretical supports in the point of view that SWFs is helpful to financial market stability by using quantitative and model analysis methods creatively. The reason why doubts on this matter still exist is because there are unsolved problems in the conduction of SWFs as an unconventional way to conduct national wealth. It should be improved by increasing information transparency, coordinating with national economy and establishing international regulatory system in the future in order to promote the function of SWFs to stabilize financial market. |
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