Issuing special Treasury bonds to purchase foreign exchange and injecting foreign exchange into the State foreign exchange investment corporation is an important measure for China to actively use excess foreign exchange funds to expand investment channels.It is an important macro-control measure;It is conducive to improving the income level of foreign exchange assets;It is also beneficial to reduce the scale of China's foreign exchange reserves;It will help ease the pressure on RMB appreciation.State leaders made an important speech to the society on this major national decision. Relevant departments have explained the purpose of issuing special Treasury bonds and the positive role they will play for many times. Experts in the financial sector have made a lot of positive analysis on this.In short, it is a good thing for the interests of the country and the people, and we strongly support it.

However, the issuance of special government bonds to buy foreign exchange raises some concerns.The market is most concerned about the issue of the object, way, pace, risk and other issues may directly affect the success or failure of this important decision.The state foreign Exchange Investment Corporation is about to manage a huge amount of national wealth, and to put that money to good use in a way that yields more than the foreign exchange reserves.The huge investment yield pressure is a severe challenge to the soon-to-be established China Investment Corporation limited (hereinafter referred to as "CIC").After all, special national debt concerns national economic security and requires comprehensive and detailed planning and a practical implementation mechanism.To this end, we put forward some suggestions for leaders to make decisions.

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Introduction -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 2

I. The historical mission of China Investment Corporation ------------------------4

Ii. The significance of the establishment of "CIC" to China's economic development ------------------4

3. Suggestions on investment direction, approach and structure ------------------------5

4. Monetary flexibility theory applied to CIC --------------------------------7

V. Implementation plan of special National debt ------------------------------------8

(I) Restructuring plan --------------------------------------8

(2) Subscription plan -------------------------------------10

(3) Technical solution -------------------------------------12

(4) Operation plan -------------------------------------14

(5) Market mechanism -------------------------------------17

(vi) The advantages and operation errors of this scheme -----------------------18

Vi. Risk prediction of special Treasury bonds -----------------------------------19

Currency reform and special Treasury bonds -----------------------------------22

Suggestions on the organizational structure of CIC ---------------------------------28

Theoretical basis and explanation of terms -----------------------------------30

Conclusion -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - 38

Attached: BRIEF analysis of CIC's overseas investment -------------------------------------38

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STR6006CN_Advice on the Investment Strategy of Chinese Investment Company

STR6006EN_Advice on the Investment Strategy of Chinese Investment Company