Sovereign funds, also known as sovereign wealth funds, mainly refer to the funds held by a government for foreign market-oriented investment. Sovereign funds are now attracting much attention, mainly because they have developed rapidly in recent years. The main force is not developed countries, but some oil-producing countries in the Middle East and emerging market countries with large foreign trade surplus. These countries have benefited a lot from the rise in oil prices. Characteristic sovereign fund, also known as sovereign wealth fund, is abbreviated as SWFs in English. Generally speaking, sovereign wealth funds have two remarkable characteristics: one is owned, controlled and dominated by the government, and the other is to pursue the goal of maximizing returns after risk adjustment. Judging from the sources of funds of sovereign wealth funds, they can be formed by a government's distribution according to the possible risk movement path through specific taxes and budgets, or by the accumulation of resource export income or non-resource trade surplus, but it is usually inseparable from how to manage excess foreign exchange reserves: Take Asia as an example, oil-producing countries in the Middle East, China and Southeast Asian countries have accumulated a large amount of US dollar foreign exchange reserves, while Asian countries do not need so many foreign exchange reserves just to maintain the function of external payment and maintain currency stability; From the perspective of economic efficiency, holding too many foreign exchange reserves with low yield is also a waste of financial resources.