As the original fountain is in ruins, the horse's head is being displayed in a pavilion within the Zhengjue Temple compound of Yuanmingyuan together with details of how it got lost and was returned.

A number of relics, old photos and models depicting the ancient glory of Yuanmingyuan are also on display at the temple.

Zhengjue Temple is one of few sites at Yuanmingyuan that generally remains intact. It was recently refurbished at a cost of 10 million yuan ($1.52 million), which was allocated by the government of Haidian district, where Yuanmingyuan is located.

"The return of the sculpture also sets an example for the international community to bring more lost relics back to their origins," Liu said.

Seven of the 12 sculptures have so far been returned to China. In addition to the horse's head, the other six are also in Beijing, at the National Museum of China and the Poly Art Museum.