China's foreign exchange reserves account for nearly 30% of the world's total.

The annual report of the State Administration of Foreign Exchange (2018) released by the State Administration of Foreign Exchange (SAFE) recently disclosed for the first time data on the operating performance of foreign exchange reserves and monetary structure. Wang Chunying, spokesman and chief economist of the State Administration of Foreign Exchange, said that further disclosure of the operation and management of foreign exchange reserves meets the needs of China's all-round opening-up, and is also conducive to enhancing the international community's confidence in China's economy and finance.

China's foreign exchange reserves have always taken "security, liquidity, value-keeping and value-added" as their operating objectives. Its core functions are to maintain balance of payments and exchange rate stability, maintain national financial security, achieve long-term and stable operating returns, and the rate of return is at a good level in the global foreign exchange reserve management institutions. The annual report shows that the 10-year average yield of China's foreign exchange reserves from 2005 to 2014 is 3.68%. According to IMF statistics in 2018, China's foreign exchange reserves account for nearly 30% of the world's foreign exchange reserves.

"China's foreign exchange reserve has always adhered to the concept of diversification and diversification of investment, flexibly adjusting and continuously optimizing the monetary and asset structure according to market conditions, making use of the relationship between different currencies and asset classes, controlling the overall investment risk, and ensuring the preservation and appreciation of foreign exchange reserve." Wang Chunying said that in terms of monetary structure, with the continuous development of China's economy and trade, the monetary structure of foreign exchange reserve is becoming more diversified and more dispersed than the average level of global foreign exchange reserve. This is not only in line with China's foreign economic and trade development and international payment requirements, but also in line with the international trend of diversification of the currency structure of foreign exchange reserves, which helps to reduce the exchange rate risk of China's foreign exchange reserves. According to the introduction, China's foreign exchange reserve operation always puts risk prevention at the first place, constantly improves the risk management and internal control framework, strengthens the ability of risk identification, assessment and management, enriches and improves risk management tools and means, and establishes and improves risk management system. By constantly strengthening the forward-looking analysis and early warning of major risk events, China's foreign exchange reserves have responded flexibly and appropriately to various market shocks and challenges such as the international financial crisis and the European debt crisis, not only maintaining the overall security and flow of foreign exchange reserve assets, but also serving China's economic development and reform and opening up, and making good preventive measures. We have made positive contributions to the battle against major risks.

China has become the world's largest gold producer, and also a major gold consumer. By the end of 2018, China's gold reserves had reached 1852 tons, ranking sixth in the world. On the main reasons for China's increasing gold reserves, Wang Chunying said that gold reserves have always been an important part of the diversification of international reserves. Gold has multiple attributes of Finance and commodity, which is helpful to adjust and optimize the overall risk-return characteristics of the international reserve portfolio. From a long-term and strategic point of view, we should dynamically adjust the allocation of international reserves portfolio according to the needs to ensure the safety, mobility and value-added of international reserves.