| As is known to all, China has the largest foreign exchange reserves in the world. How to manage such a large foreign exchange reserves effectively has always been a problem. First principle of foreign exchange reserves management is safety and liquidity. However after financial crisis of this century, traditional investment ways such as holdings of U.S. Treasury bonds showed a certain risk. China’s foreign exchange reserves system should be to diversify in order to avoid risk of putting all eggs into one basket. Diversity is necessary to adapt to the global economy and capital circulation. China has begun to explore new forms of foreign reserve investment, such as loans and sovereign wealth funds.After nearly 20 years of rapid development, China has grown into a country who has equal economy power with the United States. However, economic development also brings some problems accordingly. In recent years the excess domestic manufacturing capacity exists in variety industries. And this undoubtedly increased the new challenges for China’s economic development. This paper combines the economic background of excess production capacity and One Belt And One Road project. Analyzes the present situation of foreign exchange reserves, foreign exchange reserves investment experiences and technical advantages of China’s industries under the "new normal" economic environment, presents new ideas of foreign exchange reserves investment, which are setting up investment platform such as the silk road fund, the investment Banks, and the BRICs bank, through which China government could selected high quality projects, issue medium and long-term loans to invest in the infrastructure construction of Asia, provide funds for Asian countries economic development and social construction, and output in the process of China’s excess capacity, thus boosting domestic economy, use excess capacity,ultimately increasing the value of foreign exchange reserves and achieve common prosperity... |
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