| Sovereign wealth funds(SWFs) are special purpose investment funds or arrangements that are owned by the general government. Created by the general government for macroeconomic purposes, SWFs hold, manage, or administer assets to achieve financial objectives, and employ a set of investment strategies that include investing in foreign financial assets. SWFs have existed for many decades. Yet, for a long time, they remained largely unknown to the public and out of the policy limelight. SWFs rapidly gaining importance in the international monetary and financial system, assets under management of global SWFs totaled around 7 trillion US dollars at the end of 2014.This new class of institutional investors with significant influence on the global financial market, and are still increasing. This paper is structured as follows: Part 1 discusses the concept, aspect, development and rising of SWFs. Part 2 discusses the status and operation Strategy of SWFs. Part 3 discusses some hot issues of SWFs including: the impacts of SWFs on the Macro-economic; financial stability and the flows and pricing of the global capital markets; transparence of SWFs; Santiago Principles. Part 4 discusses the status and some suggestions in operation policy of China`s SWFs. Part 5 is the conclusion and future prospect. |
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