An Analysis Of The Investment Operation And Management Of China 's Sovereign Wealth Funds

The global distribution of foreign exchange reserves has changed dramatically in recent years due to the deepening economic globalization and the fluctuation of international oil prices. In Asia, the active emerging economies in the international financial market have accumulated huge foreign exchange reserves, the management of which has become hot research topic. Under the background, the sovereign wealth funds (SWFs) have come into existence with Singaporean and Korean patterns being typical, as both the result of continuous global economic growth and the requirement of long-term economic development. Nowadays, it is intrinsic requirement to increase China’s SWF’s investment revenues and make better use of it, by the improvement of the foreign exchange reserves management and the nation’s macro development strategy.The thesis discusses formation, characteristics, types, orientations and so on, in relation to SWFs. Further, the focus is put to China’s SWF’s background, operation mode, development and challenges, in comparison with Singaporean and Korean cases, coming to advantages and disadvantages of different ones. At the same time, based on the reform history of China’s foreign exchange reserves management, the thesis researches China’s SWF’s contributions and to-do list, suggesting the policy measures for pushing foreign reserves management ahead and serving nation’s strategic goals.