Foreign Investment Research Of SWFs Total Capacitive Based

In recent years, as Chinese foreign exchange reserve rapidly expending, the pressure on preservation and appreciation of assets is increasing. Affected by the reasonable international monetary system and their own factors of Chinese foreign exchange reserve, it excessively focused on fixed income markets of developed countries previously, making for the deviation from the safety and liquidity needs. Since the reform of RMB exchange rate, RMB appreciating constantly.What’s more, since the Subprime Crisis, the developed countries carrying out the quantitative easing monetary policy. All of these shrink the value of Chinese foreign exchange reserves more greatly. It is an urgent need to diversified operation. In2007the Chinese government set up Sovereign Wealth Fund in the form of issuing special bonds, which means that it must shoulder tasks of hedge foreign currency risk of depreciation and obtain investment income, at the same time bearing a certain financial cost. It makes Chinese Sovereign Wealth Fund which is youthful and inexperienced to face the high pressure and challenges.At the same time, due to the sheer size and sovereign background of Sovereign Wealth Funds, especially after the financial crisis, Sovereign Wealth Funds of the political powers such as China and Russia investment in the international market actively, cause and deepened the guard from western developed countries to developing countries, especially to China. All kinds of financial protectionism, investment barriers and control are strengthened at the background of international market volatility and the uncertainty enhanced. Visible, it is not easy to realize diversification layout for us. It means that is the investment not only subject to our strategic configuration, also subject to the demand and the environment of the host country. Therefore, to Chinese Sovereign Wealth Fund, how to break through all kinds of barriers and realize win-win with host country is the key to realize the strategy of investment diversification and improve investment returns.This paper focus on the core issue that the diversified investment of Chinese Sovereign Wealth Fund has been blocked at present. First to analysis the development and investment present situation of global Sovereign Wealth Funds and Chinese Sovereign Wealth Fund. On this basis, make the analysis of the core issue which Chinese Sovereign Wealth Fund faced in the investment, and discuss the cause of the problem. According to the problem formation mechanism, analysis the demand of host country, and the author puts forward the concept of "Profit-Release investment", which is that Chinese Sovereign Wealth Fund should improve the harmony cooperation, bring to the host country positive economic externality or make Profit-Release when paying close attention to their own interests in investment. Then, the paper makes identification about elements of Profit-Release investment systemicly.And to support Profit-Release investment gonging smoothly, this paper establishes dynamic signaling game model to verify the effectiveness of Profit-Release investment signal transmission. The result shows that it is conducive to developing the cooperation of both sides when improving the level of Profit-Release Investment. Sovereign Wealth Fund s will acquire investment initiative and gain long-term benefit, and host country will gain the benefit from Profit-Release Investment. Finally, give out countermeasure analysis on Profit-Release investment, which means that Chinese Sovereign Wealth Fund should carry on social responsibility investment and bring Profit-Release investment constraints into portfolio Optimization to make empirical research. The result shows that under the background of Chinese Sovereign Wealth Fund investment has been blocked,turn the investment direction gradually to Profit-Release investment and attach great importance to the high positive externality investment such as the infrastructure construction, environmental protection, and so on. It not only can effectively reduce the investment barriers from host country, but also can improve the structure of Chinese Sovereign Wealth Fund investment.