China, the world's second-largest economy, will have more than $4 trillion in foreign exchange reserve by the end of 2014, said a People's Daily report on Monday.

China used to be short of foreign exchange before the nation adopted the reform and opening-up policy in 1978, [Businesses Registration]while the country's foreign exchange reserve exceeded the $10 billion, $100 billion and $1 trillion marks in 1990, 1996 and 2006, respectively.

According to the latest statistics from the People's Bank of China, the central bank, as of the first quarter of this year, the foreign exchange reserve balance of China reached $3.95 trillion, ranking first globally and accounting for one third of the world's total.

China will see foreign exchange reserve increase if the Chinese economy runs smoothly and foreign capital continues inflowing due to the interest rate margin between China and other countries, the report said, citing experts.

The huge amount of China's foreign exchange reserve, which is mainly driven by trade surplus,[company registration in Hong Kong, Hong Kong company incorporation] has become a burden to the country, added the report.