China has been heavily invested in the US dollar but with the trade war no closer to a conclusion China is being forced to diversify. Until June of this year, China was the largest holder of US treasury's in the world but has recently been decreasing its holdings. Additionally, China is beginning to build up currency reserves in currencies other than the dollar and decreasing its exposure to the dollar. Over this same time period, China has also been buying more gold for its reserves.
China's "shadow reserves" refers to China building up its portfolio of alternative investments to further diversify risk. This includes investing in equities or other projects globally such as their belt road projects.
https://www.cnbc.com/2019/11/18/china-diversifying-fx-reserves-assets-to-counter-us-dollar-exposure.html
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