Organized by the School of Management and Capital Market Research Center of Zhejiang University, Symposium on 2017 global financial market Uncertainty and China Investment Opportunity Forum and the Opening Ceremony of Zhejiang University Capital Market Research Center were held in the Qizhen grand room of Zijingang Campus Zhejiang University, on May 22th, 2017, which is also one of the "university’s hundred twenty anniversary" activities. A capacity crowd of audiences transformed the site to be bustling with nearly 300 domestic and international academics, entrepreneurs, and teachers and students from the Zhejiang University.
The opening ceremony of the symposium 2017 kicked off at 9:00 am under the keen expectations of audiences. Director of Capital Market Research Center, Head of Department of Finance and Accounting Professor Huang Ying, from the School of Management at Zhejiang University hosted the ceremony as the chairman of this symposium, and introduced the important guests that attended the symposium. Vice Secretary of the Party Committee of ZJU Prof. Zhou Guping, Dean and Professor Wu Xiaobo,Chairman of Goldport Capital Prof. Chen jun gave welcome speeches at the opening ceremony.
Vice Secretary of the Party Committee of ZJU Prof. Zhou Guping regarded the success symposium and the establishment of the Capital University Research Center of Zhejiang University a great help to explore the problems that China's financial market is facing at a deeper level and actively cultivate the new generation of talent by using of financial innovation tools and means to study the problems of capital investment.
In his speech, Dean Wu Xiaobo indicated that due to huge fluctuation in today's international financial market, the driving force of economic growth has undergone tremendous changes, and the mechanism of enterprise value creation has also undergone obvious reform. China's capital market is also true. The establishment of the Capital Market Research Center of Zhejiang University will effectively promote the research development of quantitative investment and entrepreneurial finance, realize the organic combination of research and education, and better serve the students and social groups. He also regarded the theme of the symposium, both in line with the school of management’s pursuit of innovation towards enterprise and the capital market and they, but also stressed that innovation in today's financial market has played a vital role. We must always keep the risk coexist in mind, and make finance better use for human society by regulating the use of innovative tools.
Dr. Chen Jun at first expressed his sincere gratitude in the speech on behalf of the alumni, to the School of Management, Zhejiang University. He pointed out that China is under the transition from a traditional manufacturing power to an innovative big country, in which the use of artificial intelligence technology provides endless possibilities and great challenges for the development of financial technology. Artificial intelligence is subtly remodeling of human future blueprint. In such a world economic and financial situation, the establishment of the ZJU Capital Market Research Center can be described as conform to the trend of the times. The center will give full play to interdisciplinary, integration and sharing of the unique advantages to Zhejiang University. He also suggested that the financial market research will no longer stick to the data and models, but is committed to improving their technical capacity to explore the new wealth pursuit of mankind.
Part I. Keynote Reports
Professor Franklin Allen, from Imperial College London and former Wharton business school, gave an in-depth insight into China's stock market. Professor Allen put forward a thought-provoking question at the outset: "Why is China's economy developing so fast while China's stock market's long-term returns are even worse than bank deposits?" He pointed out that the China's stock market’s poor performance is due to immature IPO and delisting system, which led to the fact that outstanding companies cannot be listed, while poor business cannot be eliminated. “China is not lack of good business, for example, many overseas Chinese companies listed, such as Baidu, Alibaba, Tencent, have made high returns. The Chinese stock market is lack of reform on the old system," Professor Allen concluded.
Prof. Kees Koedijk, Dean of TIAS, Business School of Tilburg University and Eindhoven University of Technology, Tilburg University, put forward questions for China's future economic development and gave answers one by one. He illustrated developments signaling increased vulnerability in China’s economy are investment and export-driven growth model, low level of private consumption, massive capital accumulation and huge credit build-up. He believed that an alternative route that addresses the challenges of high credit and investment, and facilitates the rebalancing process is buying time through government intervention and to accept short-term pain for bigger long-term gain, as well as to leverage the immense potential of the private sector further, through technology-enabled innovations in the financial sector.
Professor Chen Long, chief strategy officer of the Ant Financial gave us a spectacular speech on "technology-driven financial management where to go?" What is the essence of wealth management? How will technology influence wealth management? On the basis of analyzing the IMF report and the trend of the Chinese and American financial management, Professor Chen Long thought: wealth management or not will cause huge wealth gap; the most reliable investment method is to choose more passive fund than the active fund; rational exceeding human nature, investors tend to choose a passive fund; we need psychological support, to overcome weakness of greed and short-sighted. Finally, Professor Chen pointed out the direction of development of technology and financial management: 1. passive × technology, passive financial management instead of active financial management; 2. Hedge funds civilization, reducing management fees; 3. combination of man-machine to help investment to overcome the weakness of human nature.
Professor Liu Min, Executive Vice Dean, Shenzhen Finance Institute, CUHK(SZ)）, and director of Master of Finance in the Chinese University of Hong Kong (Shenzhen) , talked about characteristics of low interest rates, plus leverage, reality on the virtual, bubbles etc., on the balance sheet of assets and liabilities on the QE. He put forward method of shrinkage in the balance sheet through monetary policy normalization, and the circulation of cash and bank reserves to determine the target scale. Under China's huge capital outflow pressure by the Federal Reserve's balance sheet shrinkage, China has get its own shrinkage. Professor Liu proposed that financial markets should be stabilized, and cannot let risk of dealing with the risk happen. The development and regulation of financial market, should be taken for overall consideration and be promoted coordinately.
Finally, Dr. Xu Jin，CEO of the Zhejiang Jiuzhang Asset Management Co., Ltd. (Magic Square), talked about the investment in the AI era. Dr. Xu pointed out the character of AI in the Chinese financial market were late starting, high labor costs, lack of derivatives, insufficient integrity of stock market data. He introduced index-linked products, the development of artificial intelligence, AI deep learning examples, and AI in investment banking, hedge fund applications, AI technology in the cases of quantitative transactions operation performance, which reveals the role of the artificial intelligence technology in quantitative trading practice. Dr. Xu also described how to use technical means to avoid financial risks in investment, looking forward to the future of artificial intelligence investment prospects.
Part II: Q&A
Part: III the opening ceremony of the Zhejiang University Capital Market Research Center
Vice Secretary of the Party Committee of ZJU Prof. Zhou Guping, Dean and Professor Wu Xiaobo, Chairman of Goldport Capital Prof. Chen Jun, Director of Capital Market Research Center, Head of Department of Finance and Accounting Professor Huang Ying, Shenzhen China Merge& Acquisition Fund CEO Mr. Cheng Houbo, together uncovered the bronze plate, which means the official launch of the center.
The symposium this year closed successfully and will be held regularly every year. ZJU CMRC will give full support to the school of management to cultivate the healthy power leading the future of China, and to make innovative and proactive moves in furthering international collaborations, conducting research, nurturing students and fulfilling social responsibilities.
