Research on Investment and Operation Issues of Sovereign Wealth Funds in China

This paper systematically explores the investment theories and current practices of Sovereign Wealth Funds (SWFs), aiming to identify and manage their potential risks in order to improve investment returns. By analyzing the development background of sovereign wealth funds both domestically and internationally, the paper highlights their important role in global capital markets and points out their unique investment strategies and operational models, including characteristics such as long-term investment and diversified asset allocation. The paper further examines the internal and external risks faced by sovereign wealth funds, including portfolio risk, foreign exchange risk, political and policy risk, and explores the pressures brought about by global economic fluctuations and financial market volatility. To address these risks, the paper proposes a comprehensive risk prevention strategy, using the Analytic Hierarchy Process (AHP) for risk assessment, and establishes a targeted risk prevention system to facilitate dynamic adjustments and optimized portfolio investment in a complex and ever-changing market environment. Through a case study of Chinas sovereign wealth funds, the paper summarizes successful investment experiences and development paths, providing reference for related decision-making. The research shows that scientific risk management and investment strategies not only enhance the investment efficiency of sovereign wealth funds but also have far-reaching significance for the sustainable development of the national economy.