1. SovereignWealth fund corresponds to private wealth, which refers to the public wealth accumulated by a government through specific tax and budget allocation, renewable natural resources income and balance of payments surplus, which is controlled and dominated by the government and usually held in foreign currency.

2. Traditionally, the management of sovereign wealth is very passive and conservative, and its impact on domestic and international financial markets is also very limited. With the rapid increase of sovereign wealth caused by the soaring international oil price and the expansion of international trade in recent years, the management of sovereign wealth funds has become an increasingly important issue. The latest development trend in the world is the establishment of sovereign wealth funds (SWFs) and the establishment of professional investment institutions that are usually independent of the central bank and the Ministry of Finance to manage these funds.