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The joint exercise is the seventh between Russian and Chinese armed forces since 2003. Chen Hu said such cooperation is the most effective way to deepen the two militaries' strategic partnership of coordination.

This year's draft defense budget is 67.6 billion yuan more than the defense expenditure of 2011, said Li Zhaoxing, spokesman for the annual session of China's national legislature.

Meanwhile, China hopes that the relevant countries will realize the truth and the situation, abstain from their fickle and delirious attempts to seize other countries' territory, and even more, not allow the situation to escalate by letting external forces "fish in troubled waters."

Frequent high-level communication, closer economic and trade links, active exchanges in such fields as science and culture have brought real benefits to the two peoples, Wang said.

Analysts said even if the NCSSF uses the money to buy stocks, the proportion will likely be very low.