China's foreign exchange reserve exceeded $1 trillion as of the end of October, which is not only a record in China, but in the world, and is about 43 percent of the country's GDP. Early in February, China had become the largest foreign exchange reserve owner in the world.

The huge foreign exchange reserve implies that China's economic strength is growing and adequate foreign exchange reserves have been shown to be an effective way of fighting international speculative attacks and defending against a financial crisis. However, too much foreign exchange has forced the central bank to issue more renminbi, causing excessive liquidity in domestic financial markets. And how to manage such a huge reserve and to make sure the value is stable or increasing is a big challenge.