How to diversify the various forms of foreign exchange reserves, as the State Council pointed out, is a major challenge for the government, said an article in the Southern Metropolis Daily. Excerpt:

China's foreign exchange reserves were less than $600 billion ten years ago. They hit $3.5 trillion at the end of June.

To maintain, even increase, the value of such a large sum of money the government should consider establishing a sovereign wealth fund and seek professional investment talent from several companies to manage the fund.

Putting all one's eggs in several baskets is a good way to avoid risk.