The Study Of Chinese Financial Institution’s Securities Investment To The United States

In recent years, Chinese financial institutions expand the scale of investmentsecurities in the United States dramatically so that China has been one of the majorforeign portfolio holdings of U.S. Securities.This shows that China is heavilydependent on US financial markets. But investment in securities of the United Statesis focused on low-yielding US Treasury market.In the premise of ensuring the safetyof China’s securities assets, how to improve profitability is an issue that we need toface. Chinese investment in US securities as an important part of bilateral capitalcirculation system between the two countries makes a profound impact on the Chinesegovernment’s policy options. China has become the biggest beneficiary dollarstandard, at the same time,China is also the biggest victims dollar standard. How toreduce dependence on the US financial markets, is a major research direction of theUS securities investments. Therefore, the study of China has some practicalsignificance for US securities.This paper is divided into five chapters.The first chapter includes, describing the background and significance of thetopic of this article;sorting and overview of in the light of the causes and impact ofChinese investment in US securities;the following about the article describes thestructure;last introduce bit and inadequacies of article.The second chapter is about character, scale and structure of China portfolioinvestment to US. This chapter first is summarizing investment of US securities sinceChina’s reform and opening three stages; On this basis, the flowing term analyzes thescale of Chinese investment in the US securities, and the term structure of the USSecurities and assets held by Chinese investors.The third chapter analyzes the reason for China’s investment in US securities.This chapter first analyzes the relationship between China’s export-oriented strategyand China in the United States securities investment, pointing out that long-term tradesurplus and excessive investment preferential policies have led to the rapid growth offoreign exchange reserves; Secondly, this chapter analyzes the main reason why China’s foreign investment is mainly in investment securities;Finally,analyzed thereason why United States is China’s largest securities investment for the country.The fourth chapter is the impact of China’s financial institutions to the USSecurities Investment. This chapter analyzes the exchange rate risk, including China’sforeign exchange reserves and inflation risks to the asset; then analyzes the impact ofChina’s securities investment in US on China’s economic development.Chapter five is about policy recommendations on China’s securities investmentin US. Including:carry out the implementation of diversity management; controlforeign exchange reserves passive growth; adjust the imbalance between domesticsavings and investment imbalance through financial reform; transform economicgrowth pattern by expanding domestic demand; actively promote theinternationalization of RMB.