News

Following a year where several "black swan" events and capital market fluctuations took place, China's economic growth in 2017 will face uncertainties and challenges, and this should be a motivation for the nation to further innovate and reform its financial market, said macro economists during the recent Shanghai Finance Forum. Hosted by Shanghai Advanced Finance Institute (SAIF) and held at the Shanghai Jiao Tong University, the forum gathered economists from around the world to discuss about the major challenges that China's financial market is facing, including regulatory uncertainties in the financial technology sector (FinTech), A-share market volatility, foreign exchange rate fluctuation and the pressures that arise from reforming economic growth pattern. Wang Jiang, Mizuho Financial Group Professor at the Sloan School of Management, said that China's switch from a scale-oriented and government-led growth pattern to an efficiency-focused and market-oriented one will inherently require a greater degree of openness in the system. "The key of this reform is to truly let the financial market play the decisive role in allocating resources and risk management, and this role must be supported by a modern, open financial system," said Wang. Robert Merton, School of Management Distinguished Professor of Finance at MIT Sloan, said that China would find its own practice to achieve an "economic nirvana" through innovation. For example, FinTech can be regarded as the future of financial and technological innovation, and can play a significant role in China's financial system should it be able to build trust among investors, regulators, and financial services providers. Revamping the currency policy framework should also be included in the financial market reform, said Zhu Min, president of National Finance Research Academy. "In the past when we talked about financial market reform, we focused on reforms of banking system and market policy. We rarely talked about currency policy framework, but it has to be addressed because it is fundamental to financial market reform," said Zhu. "Now, as the renminbi is included in the Special Drawing Rights basket, the currency policy framework must be aligned with SDR requirements, such as enabling renminbi to be hedged and traded. More global use of renminbi will push forward such reforms," said Zhu.

The Shanghai Advanced Institute of Finance aims to develop talent and provide solutions to China's economic issues. The Shanghai Advanced Institute of Finance has vowed to strengthen its efforts in providing effective solutions to China's economic issues by continuing to develop top talent for the financial industry and generating cutting-edge knowledge in financial theory and applications, said Chun Chang, executive dean and professor of finance at SAIF. "As SAIF is based in China, we naturally have a deep understanding of the domestic market and China's financial system, which allows us to better develop solutions and a theory system with a global perspective," Chang said. Established in 2009, SAIF became one of the youngest business schools in the world to receive the international accreditation from the Association to Advance Collegiate Schools of Business International, a global educational accreditation network, earlier this year. In this year's Financial Times' annual ranking of the best Master in Finance programs in the world, SAIF made a strong debut when it was ranked 2nd in Asia and 28th in the world. "China's financial and economic issues are unique. It takes both local insights and international perspective to tackle them. That's what SAIF tries to do - we study Chinese issues using an international perspective and this allows us to be in a leading position with well-rounded strengths in the finance community," Chang said. Research into China's economy, the second largest in the world, has been a hot topic in the academic world. According to Chang, despite China's rising status internationally, the domestic financial industry is still closed and lagging behind its international counterparts. However, the local financial industry nevertheless holds great potential in the long-term development of China's economy. According to the dean, there is also a shortage of theories and studies to support the government's decision-makers. In response to this issue, Chang said: "At SAIF, we are committed to training top talent, building an open platform for research and becoming a leading think tank, especially on issues related to China's financial system." Birth of SAIF The idea to form the SAIF was born when leading city officials visited Shanghai Jiao Tong University in 2008 and were given a chance to compare the finance major curriculums of local universities and overseas schools. "People were shocked to find huge differences between the curriculums and this was when we realized that it was necessary to carry out education reforms," Chang said. "The authorities knew that Shanghai needed to have a high-end financial institute to help the city progress and catch up with its international counterparts. This marked the birth of SAIF." The institute now boasts an internationally-minded faculty team, composed mostly of overseas returnees who not only have rich overseas background and experience, but also possess deep insights into the domestic market. Chang was the first Chinese to become a finance professor in an American university, having taught at Carlson School of Management, University of Minnesota, for 17 years. He is also the first scholar to return to work in China on a full-time basis after becoming a tenured finance professor in a leading American university. SAIF currently has a faculty of 27 full-time professors and 35 special-term professors. Forty-six of them obtained tenured positions from top business schools in North America and Europe. International operation In a bid to create a dynamic environment for education and research, SAIF has also been pegging its standards to those of the world's top-tier business schools, and is looking to expand its offerings. In addition, the curriculum and management of the faculty are also modeled after the best business schools in North America. "Our full-time faculty members are recruited from the finest institutions in the world, including Stanford, Wharton, Columbia, Chicago, MIT and UBC. They are reviewed and promoted in a manner consistent with leading research institutions in North America and Europe," Chang said. "SAIF is also a platform for exploring the reform of the internationalization of higher Chinese education, something that has not been truly achieved yet," he added. Over the years, SAIF has widely cooperated with overseas business schools for faculty and student exchanges. China Lab, for example, is a three-month international course for SAIF's MBA and Master of Finance students and their counterparts at MIT's Sloan School, and it is designed to help students from both countries gain firsthand experience. Link: http://usa.chinadaily.com.cn/epaper/2016-11/04/content_27273860.htm

Key findings: • Nearly half respondents invest to improve their standard of living. Long-term goals are important reasons for investing as well, with one-third hoping to support retirement and some hoping to fund education for children or grandchildren • Seven in ten of the emerging affluent cite market volatility as their biggest investment concern, and tend to prefer “tangible” assets such as cash and real estate • Only one-third of the emerging affluent have sought professional financial advisory services. Of those who have engaged with an advisor, just one quarter describe their advisors as “caring about my financial future and investment goals” • Only 8% of China’s emerging affluent investors have assets overseas Shanghai, May 24, 2016 – China’s emerging affluent may not be the homogenous, short-term gain-obsessed group of investors that many believe them to be. According to a recent white paper released by the Shanghai Advanced Institute of Finance (SAIF) and Charles Schwab & Co. Inc. (Schwab), this growing group is seeking long-term investment strategies to support their life aspirations, and their needs will drive the development of China’s financial industry. “China’s Emerging Affluent Investors: Addressing Rising Expectations,” is a collaboration between SAIF and Schwab based on a survey of 450 investors, whose annual after-tax income ranges from RMB 125,000 to RMB 1 million, as well as 30 interviewees including industry players, scholars, and media representatives. The paper provides insights into the investment expectations and habits of China’s emerging affluent, a group expected to grow to 280 million people and to account for 25% of China’s total consumption by 2020. “The emerging affluent class is a significant group whose consumption and investing power is playing an increasingly important role in shaping China’s economy,” says Lisa Hunt, Executive Vice President of International Services and Special Business Development at Charles Schwab & Co. Inc. “Their aspirations merit close examination.” The white paper found that, rather than being a homogenous group, China’s emerging affluent investors have multiple reasons for investing. Respondents cited improving their living standards as their primary reason for investing (42%). In addition, 33% say they invest to support themselves in retirement, while 12% invest to fund education for children or grandchildren. “These emerging affluent want better lives for themselves and for their families, now and in the future,” says Prof. Ning Zhu, Deputy Dean at SAIF, “The rising costs of healthcare and education have been putting pressure on them, and that’s where investing can provide support.” Take retirement for example, China’s current national pension system provides far less than the US$ 1.79 million (RMB 11.1 million) desired by the middle class to have a comfortable retirement. This fact suggests middle-class Mainland Chinese investors have a desire to save for their retirement. Despite their various aspirations, investment options for this group are limited. The research finds that “tangible” assets, such as cash and real estate are favored. Emerging affluent investors hold 45% of their assets in cash or cash equivalents, and they have more than twice as much real estate assets as non-real estate assets. Furthermore, only 8% of the emerging affluent have investment overseas. “China’s industry and policy environment play a role in Chinese investors’ lack of diversification,” says Prof. Ning Zhu. “For example, China has not developed a mature bond market yet, and that limits people’s investment options.” Emerging affluent attitudes towards risk varies. In a certain sense, these investors are naturally prudent and defensive in nature. For example, a majority of investors (54%) indicate they would invest in an asset that offered a guaranteed, but lower, return on investment. Conversely, in other contexts the emerging affluent exhibit aggressive investing tendencies, such as market timing and jumping from product to product based on short-term speculation. One out of two (48%) survey respondents indicate that they would double down on a stock after a price decline in the hopes of capturing upside. According to SAIF’s Prof. Ning Zhu, most investors in China are indeed risk-averse. However, “the government and media create a layer of ‘guarantee’ which leads many investors to believe many otherwise risky investment to be ‘safe.’” The white paper also finds that China’s emerging affluent are self-directed investors: they rely heavily on friends, family, and media for investment knowledge. Only one-third (32%) seek help from professional advisors. “Trust is a big issue here,” says Lisa Hunt. “The emerging affluent need to be respected and nurtured to be understood.” In this respect, China’s financial service providers lag behind their international counterparts. Only one quarter (23%) of the respondents who say they have engaged with a financial advisor describe their advisor as “caring about my financial future and investment goals.” As the expectations of China’s emerging affluent rise, China’s financial industry will undoubtedly develop to cater to those expectations. Lisa Hunt comments that “We have seen this trend in many mature markets as a client-centric, customized solution-providing model of wealth management occurs due to client expectations. Given the emerging affluent’s rising expectations and the Chinese financial industry’s fast pace of growth, we are confident in saying that a similar business model will be a development focus here too.” About SAIF Shanghai Advanced Institute of Finance (SAIF) was established at Shanghai Jiao Tong University in April 2009, with strategic and financial support from the Shanghai Municipal Government. As a member of Shanghai's financial community, it strives to contribute to the development of Shanghai as a global financial center. SAIF's mission is to become a world class institution of research and advanced learning in finance and management. SAIF is committed to developing top talent and cutting-edge knowledge, with a focus on Chinese markets and their global connections. About Charles Schwab & Co., Inc. Charles Schwab & Co., Inc., member SIPC, is a US leading provider of investment services and products to individual investors around the world and registered investment advisors. Charles Schwab & Co., Inc., 211 Main Street, San Francisco, CA 94105, USA / +1 800-838-6569 SAIF and Schwab are not affiliated to each other. Any verbal representations by one party are independent of the other. None of the information constitutes a recommendation by Schwab or a solicitation of an offer to buy or sell any securities. The information is not intended to provide tax, legal or investment advice

June 20, 2016 – The Shanghai Advanced Institute of Finance (SAIF) made a strong debut in the Financial Times’ annual ranking of the best Master in Finance (MF) programs in the world, ranking 2nd in Asia and 28th in the world. For value for money, SAIF ranked 1st in Asia and 2nd globally. Further, SAIF also outshined its peers in Asia in the areas of international mobility, international course experience, and faculty with doctorates. SAIF was established in 2009 as part of the renowned Shanghai Jiao Tong University with the goal of supporting the development of Shanghai into a global financial center. It is benchmarked against the leading finance departments and business schools in the world. SAIF boasts a faculty composed of about 60 professors – all with Ph.D. degrees from overseas universities and over 40 of them with tenured positions from top business schools in North America and Europe. With an aim to become a world-class institution of research and advanced learning in finance and management, SAIF is committed to training top financial talent, building an open platform for research, and becoming a leading think tank, especially on issues related to China’s financial system. Over the last seven years, SAIF has successfully launched a comprehensive portfolio of programs specialized in finance, including the Master of Finance (MF), MBA, EMBA, DBA (Doctor of Business Administration), Ph.D., and EDP (Executive Development Program) programs. The MF program is a flagship of SAIF with an average acceptance rate of lower than 5% since it first matriculated students in the fall of 2009. The mission of the SAIF MF program is to provide the best and brightest young individuals with the academic knowledge and professional skills needed to succeed in the global finance industry. To that end, the program provides students with a curriculum rooted in modern financial theory, that delivers sophisticated quantitative and analytical tools and imparts state-of-the-art practical knowledge and skills to meet the rigors of today’s finance profession. The program is committed to fostering exceptional leadership and communication skills, the highest levels of professionalism, and an exemplary sense of social responsibility. The FT rankings for MF (pre-experience) programs, started in 2011, are calculated according to information provided by business schools and their alumni based on a total of 16 criteria, including salary, value for money, and diversity of faculty and students. The 2016 edition saw 55 schools included in the ranking. SAIF is a new entrant following its accreditation in February by the Association to Advance Collegiate Schools of Business International (AACSB), the oldest and one of the most prestigious global accrediting bodies for business schools. “The FT ranking affirms our efforts to offer the best education in finance to the young talent of tomorrow and recognizes the achievements we have made on the journey to becoming the best in the world,” said Chun Chang, Executive Dean of SAIF. （end）

The Shanghai Advanced Institute of Finance (SAIF ) at Shanghai Jiao Tong University has earned the accreditation of the Association to Advance Collegiate Schools of Business International (AACSB) less than seven years after it was founded, thus becoming one of the youngest business schools in the world to be accredited. Founded in 1916, the business association is the oldest and one of the most prestigious global accrediting bodies for business schools that offer undergraduate, master’s, and doctorate degrees in business and accounting. Less than five percent of the world's business schools have earned its recognition, which is often considered as a hallmark of excellence in business education. On average, the accreditation process takes 5-7 years to finish. "SAIF confirmed alignment with 15 global accreditation standards, while demonstrating how it achieves success within each of the three pillars on which AACSB accreditation rests — engagement, innovation and impact," Robert D. Reid, AACSB's executive vice president and chief accreditation officer, said in an announcement of the accreditation. Built in 2009 by the Shanghai municipal government to assist its goal of turning the largest city of China into a global finance hub and to satisfy the urgent developing needs of the city and country's financial industry, SAIF is known for its world-class faculty composed of mostly professors recruited through a rigorous process from internationally-renowned business schools in North America and Europe. SAIF officially kicked off its application for accreditation in early 2013 and completed the process in about three years. “The AACSB accreditation affirms the operational model of our institute and the achievements we have made so far,” said Chun Chang, Executive Dean of SAIF. Currently, SAIF offers the most comprehensive portfolio of business education programs specialized in finance in China, including the Master of Finance (MF), MBA, EMBA, DBA (Doctor of Business Administration), Ph.D. and EDP (Executive Development Program) programs. “We benchmark ourselves against leading finance departments and business schools. The AACSB accreditation represents a milestone as we enter a new chapter of development and internationalization,” Chang said, adding that SAIF’s goal is to become a world-class institute of advanced learning, research and think tank in finance and management in the long run.

SAIF Annual Faculty Retreat 2016 was held in Shanghai on July 18th and 19th. Full-time professors, special-term professors, management team and representatives from relevant departments attended the two-day retreat. Presentations given by deans and program heads focused on the School’s achievements in institution building and AACSB Accreditation, and programs’ progress in admission and teaching respectively. Participants had discussions on a broad range of topics in teaching, learning and research, including international collaboration, teaching innovation, China related research, faculty development, etc. The goals for the faculty retreat are to build a shared picture of the School’s strategic directions and challenges, to share innovative ideas and suggestions to enhance teaching and learning, to develop collaboration across departments, and to strengthen ties among full-time professors and special-term professors.

Editor's Note: Brendan Kelly, a 2nd year MBA student at Notre Dame, has become a pioneer in the school's relationship with SAIF. Brendan shared his experience of studying and life in Shanghai through a blog post.Two QuestionsTwo months ago, my fiancée and I arrived in Shanghai with four suitcases, a couple of guidebooks, and maybe a dozen useful phrases in Mandarin. We had no place to live, no working Chinese cell phone, and only a rudimentary understanding of the layout of the city. Our friends back home were split into two camps, defined by two very different questions, “Why are you moving to China?” versus “When can we come visit?” The answer to the second question was easy: as soon as we sign a lease. The first question is more profound and requires further introspection, but our instinctive response was “Because we can.”The OpportunityIn March of 2012, Notre Dame announced a new partnership with the Shanghai Advanced Institute of Finance (SAIF) at Shanghai Jiao Tong University. The new partnership opened up an exchange program where Notre Dame MBA students would have the opportunity to take classes at SAIF and live in Shanghai from August to January. My fiancée and I talked about the program, what implications it could have on our futures, and ultimately decided that the opportunity to live and study in a city as dynamic as Shanghai was too good to pass up. When we eventually received word that I was accepted into the program we were elated but anxious. We love Notre Dame and cherish the Mendoza community that first led me to believe that Notre Dame was the right place to further my business acumen. We would be loath to leave our friends and family more than 7,000 miles away. However, the more we considered the opportunity, we realized that spending six months in Shanghai was more than just a chance to study abroad, it was the best way to follow one of my favorite dictum’s from Mark Twain, to “never let my schooling interfere with my education.”The ProgramSAIF's MBA program focuses almost exclusively on finance so my seven elective courses run the gamut from Private Equity in Practice to Corporate Governance in China. While I often miss my classmates and professors from Notre Dame, my new colleagues at SAIF have all proven friendly, intellectually curious, and thoughtful. The bulk of my classmates are Chinese Part-Time MBA students. The insight that they provide to our classes after working full-time in many of China’s leading financial companies has been invaluable to my education. My fellow foreign exchange students, a mix of Danish, German, Canadian, Thai, Icelandic, and British graduate students have further emphasized the international make-up of Shanghai and have been a great support system as we navigate the waters of Shanghai together.The ExperienceDuring our first few days, we were truly overwhelmed by the size and pace of Shanghai. Skyscrapers dominate the business districts on either side of the Huangpu River and towering apartment buildings are as numerous as neighborhood noodle shops. The noise on the street is an endless cacophony of shouted conversations, continuous construction work, and thousands upon thousands of bleating car and motorized-bike horns. However as we spent more time here, became more acquainted with the labyrinthine streets, and delved into the rich cultural milieu of our new city we have grown to love it here. We have both been taking Mandarin classes and have learned enough that we can have brief conversations with friends, order off of almost any menu, and even read a few dozen Chinese characters.While we occasionally miss some of the comforts of America, Shanghai is beginning to feel like home. And thanks to the Notre Dame Club of Shanghai, we have even been able to catch most of the Notre Dame Football games. It has made the world feel very small and interconnected to cheer on the Fighting Irish knowing that our friends and family are doing the same thing half a world away. Perhaps that’s been the most immediate lesson of my education so far: the world is staggeringly large, but the networks we create and the communities we become involved can help connect us, even 7,000 miles away.

SAIF MF program is always devoted to establishing the strategic cooperation relation with the financial industry and providing more high-quality industrial resources for students accordingly, allowing them to closely keep pace with the demand and development of the industry either in classroom learning, skills training or personal career development. The cooperation of SAIF with the industry not only rests on school and each teaching projectlevel, but also covers every student deeply. To help every student develop better and broadenstudents’ industrial vision, SAIF recruits nearly 100 senior administrative personnel with richindustrial experience and successful experience from the famous enterprises and institutes infinancial industry as the industrial mentors of the students. Each industrial mentor only coach oneto two students on average. SAIF organizes the exchange meeting for industrial mentors and students. However, the communicationefficiency and contact degree between mentors and students more depend on the students’sociability. These industrial mentors will not only become the students’ good teachers in careerdevelopment, but also may become good friends of students in life, which is a great help to thefuture development of SAIF MF students.

China Academy of Financial Research (CAFR) is the open research platform and high-end think tank with international level founded relying on Shanghai Advanced Institute of Finance (SAIF). CAFR in SAIF is to help all sectors of society solve major financial problems and challenges by applying modern financial economic theory and practice experience and provide the innovative thoughts, programs, products and technologies meeting the needs of market and policy to the construction and development of China’s modern financial market.SAIF CAFR has an international first-rate research team composed of more than 50 famous financial scholars, senior government officers and officials of financing institutions home and abroad in total at present. This team not only has the global vision and has a good knowledge of the financial theory and practice, but also deeply understands Chinese market. In the just two years since SAIF CAFR was founded, it has obtained rich achievements: publishing more than 20 articles in international top magazines; completing 14 researches on major financial problems involved with the international, national and regional level; “Chinese Summer Institute of Finance” founded by it has become the most influential academic communication platform for finance in China; “Shanghai Finance Forum” organized by it has become the high-end communication platform for Shanghai to construct the international financial center.SAIF CAFR attaches great importance to the long-term cooperation with all sectors of society. At present, the financial institutes we have established the cooperation relations with include: Shanghai headquarter of People's Bank of China, Wind Information, Shanghai Municipal Development & Reform Commission, Financial Service Office of Shanghai City, and Shanghai Financial Association. In the future, CAFR will carry out the wide and deep cooperation with all sectors of society continuously.

Industrial Advisory Board (IAB) founded in 2013 is a high-end advisory board to gather the industrial excellent entrepreneurs’ idea bank and give advice and suggestions to the long-term development of MF program. Each adviser of IAB is the leader in financial industry. They have very rich industry experience and leadership recognized in the industry. They all have great impact on their respective field of financial industry.Moreover, they are also devoted to the education cause, making contribution to the future of financial industry in China through becoming the industrial adviser of SAIF MF program. The course setting of SAIF MF program is developed by the senior professors of IAB and SAIF together, to ensure the knowledge we teach to students is closed connected to the need of industrial development. We invite members of IAB to the MF classroom to ask them to comment on our teaching, and invite them to communicate with students face to face, helping MF students better understand financial industry.The IAB members are:Mr. Jeffrey Chen, General Manager and a board member of Advanced Semiconductor Engineering, Inc.Mr. Xiaosheng Chen, Chief Strategy Officer, GM of Institutional Client Division of SWS Co. LTDMr. Hiroki Miyazato, Deputy Chief Executive Officer of Haitong Securities., LTDMr. Andrew Kuo, Senior Advisor of Blackstone Private EquityMr. Xinjun Liang, Vice Chairman and CEO of Fosun GroupMr. Xinyi Liu, Executive vice president and CFO of Shanghai Pudong Development BankMr. Victor Yan, Managing Director, Head of Market Risk and Basel Director China, Standard Chartered BankMr. Lijun Lin, President of China Universal Asset Management