News

July 26, 2018

Professor Jiang Wang Won the China Economics Prize 2018

On July 12th, 2018, Professor Jiang Wang, Chair of Academic Council of Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University and Mizuho Financial Group Professor of the Sloan School of Management, MIT, was awarded the China Economics Prize 2018 for his exceptional contributions in the field of finance. Established in 2016, the China Economics Prize is founded and led by the National Economics Foundation. The purpose of the award is to advance theoretical innovation, to boost economic science, and to encourage and promote Chinese economists to contribute to the prosperity of human economic science by awarding Chinese scholars who have made outstanding contributions to economics. The recipients of this year’s prize are Professor Jiang Wang and Professor Wei Xiong, the Academic Dean of the School of Management and Economics of the Chinese University of Hong Kong, Shenzhen, Professor of Finance and Professor of Economics at Princeton University. According to the Prize Committee, Professor Jiang Wang‘s important contribution is the development of a new asset pricing framework distinguished by incorporating market frictions into neoclassical theory, and the framework comprises three components. The first component is the development of asset pricing models that capture market participants’ important trading needs, providing a new theory to analyze the resulting equilibrium outcomes of such a model such as trading volume and price dynamics. The second part is studying market liquidity issues from the perspective of market frictions, thus providing a theoretical foundation for market liquidity. The third part is identifying potential inefficiencies caused by market frictions and exploring potential policy remedies ranging from regulatory actions to market interventions. Professor Wang’s research is mainly in the area of asset pricing, investment and risk management, market liquidity and stability, international finance, financial innovation and financial engineering, and Chinese capital market. He has published extensively in leading academic journals. He is the recipient of the Smith Breeden Prize, the FAME Research Prize, the Leo Melamed Prize, the Batterymarch Fellowship, among other scholarly awards. He has served on the editorial boards of the Journal of Financial Markets, Operations Research, Quantitative Finance, Review of the Financial Studies and other professional journals. Professor Wang has served as a member of the Financial Advisory Roundtable of the Federal Reserve Bank of New York, the International Advisory Council of China Securities Regulatory Commission, the Economic Advisory Board of NASDAQ Stock Market, Inc., the Academic Advisory Board of FTSE and the Academic Advisory Board of Moody’s. He has also served as a Director of the American Finance Association and the Western Finance Association, the Distinguished Visiting Professor of the London Business School and the Singapore Management University, and the Director of China Finance Research Center at Tsinghua University. He was President of the Western Finance Association (2017-2018).

July 26, 2018

Professor Feng Li Received the 2018 AAA Distinguished Contributions to Accountin ...

On June 14, 2018, Professor Feng Li, Deputy Dean and Professor of Accounting at Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, received the 2018 Distinguished Contributions to Accounting Literature Award by the American Accounting Association (AAA). Founded in 1916, the American Accounting Association is the largest community of accountants in academia and one of the most influential academic accounting organizations in the world. The Distinguished Contributions to Accounting Literature Award is presented annually to work or related works published more than five years but not more than 15 years prior to the year of the award and recognizes accounting research based on uniqueness and magnitude of contribution to accounting education, practice and/or future accounting research, originality and innovative content, clarity and organization of exposition and soundness and appropriateness of methodology. The 2018 Distinguished Contributions to Accounting Literature Award is given to Professor Li for his works entitled “Annual report readability, current earnings, and earnings persistence” and “The Information Content of Forward-Looking Statements in Corporate Filings – A Naïve Bayesian Machine Learning Approach”. The award will be presented to Professor Li on August 8, 2018 at the AAA Annual Meeting in Washington, DC. Professor Li's research interest mainly lies in financial accounting, corporate disclosures and textual analysis. He has published widely in leading academic journals such as Journal of Accounting Research, Journal of Accounting and Economics, The Accounting Review, Management Science, and Journal of Financial Economics. Professor Li holds a Ph.D. in Business Administration with a concentration in Accounting, Finance and Economics area from University of Chicago. Before joining SAIF, Professor Li was Harry Jones Associate Professor of Accounting with tenure from 2011 to 2015 and the Ernst & Young Assistant Professor of Accounting from 2004 to 2011 in Stephen M. Ross School of Business, University of Michigan.

July 26, 2018

Peter Carr Unfolded the Mystery of Options Market Volatility at SAIF Distinguish ...

As the guest speaker of SAIF-CAFR Distinguished SpeakerSeries on July 23rd, 2018, Prof. Peter Carr (Head of the Department of Finance and Risk Engineering at the School of Engineering of New York University), focused on the options market and analyzed the relationship between volatility trading, skew trading, and smiletrading. Prof. David Li, Deputy Director of China Academy of Financial Research (CAFR) and Professor at Shanghai Advanced Institute of Finance (SAIF) at Shanghai Jiao Tong University (SJTU), hosted the interactive discussion session. Prof. Carr is highly recognized and respected by both students and practitioners of financial metrology. As one of Wall Street's most authoritative experts in quantitative investment, he worked for several of the world's leading institutions (including Morgan Stanley and Bloomberg Quant Research) and he was selected as one of the “Top 50 Fin-Tech Influencers”. Moreover, he has more than 85 publications in academic and industry journals and serves as an associate editor of several journals related to mathematics finance, boasting extensive experience in both industry and academia. During the event, Prof. Carr explained the definitions of volatility trading, skew trading, and smile trading to the audience, and analyzed the right timing of these trading opportunities. When the expectation of random mean is different from the observed implied volatility, it means an opportunity for volatility trading. When the non-zero slope is different than expected, there is a chance of skew trading. And when the convex number is different from the actual volatility in the future, it implies an opportunity for smile trading.

July 09, 2018

Xiaochuan Zhou at SAIF Distinguished Guest Series

On July 1st, Xiaochuan Zhou, President of China Society for Finance & Banking and former President of the People's Bank of China, shared his insights and analysis on Fin-Tech, Big-Tech, and other hot topics, (including eMoney and Libra), at the SAIF Distinguished Guest Series. Sixian Jiang, Secretary of the CPC Committee of Shanghai Jiao Tong University (SJTU) and Vice Chair of SAIF Board; Dexiu Ma, Deputy Director of the Committee of Education, Science, Culture, Health and Sports of the 12thNational Committee of the Chinese People's Political Consultative Conference (CPPCC), former Secretary of the CPC Committee Secretary of SJTU, and former Vice Chair of SAIF Board; Xiaoming Zhu, Vice Chairman of the 11thShanghai CPPCC and former President of China Europe International Business School (CEIBS); Penghui Jin, Deputy Director of the Shanghai Headquarters and President of the Shanghai Branch of the People's Bank of China; and Yang Zheng, then Director of Shanghai Municipal Financial Regulatory Bureau and Director of SAIF Board were invited to the event, along with nearly 300 SAIF faculty, students, and alumni. In his speech, Zhou elaborated "China's current financial business systems and their characteristics”, “some questions to face and answer before innovating the systems”, “general considerations of financial policies on Fin-Tech”, and “some preliminary comments on eMoney and Libra"; he then shared his latest insights. Jiang Wang, Chair of Faculty Council at SAIF, presided over the Q&A session, on which he discussed and exchanged ideas with Zhou on the topic of “Revolutionary Innovations that Will Be Brought about by the Evolution of Information Technology”; they then answered questions from the audience. The event was hosted by Chun Chang, Executive Dean of SAIF.

July 05, 2018

SAIF Witnessed the Inaugural NBER-SAIF Conference

From June 29thto 30th, 2018, the inaugural NBER-SAIF Conference was held at Shanghai Advanced Institute of Finance (SAIF), Shanghai Jiao Tong University (SJTU). This marked the kick-off of the 10-year collaboration between SAIF and the National Bureau of Economic Research (NBER). The theme of this event was “Retirement Protection: Public and Commercial Annuities”. The two-day conference brought together outstanding representatives from both home and abroad. It not only turned the event into an academic festival, but also enabled cross-border thinking of retirement protection solutions in China. During the conference, a total of six leading economists and eight scholars from NBER presented their papers, reviewed the status quo and challenges of China's retirement protection system, and learnt from each other's experiences and lessons. Nearly 100 participants from Chinese and international institutions and industry attended the event. NBER representatives included: Prof. James Poterba, NBER Chairman and Professor of Economics at MIT; Prof. Hanming Fang, Professor of Economics at the University of Pennsylvania; Prof. Alan Auerbach, Professor of Economics at the University of California, Berkeley; Prof. Olivia Mitchell, Executive Director of the Wharton Pension Research Council at the University of Pennsylvania; Prof. Shangjin Wei, Professor of Economics at Columbia University; and Prof. Robert Clark, Professor of Economics at North Carolina State University. Prof. Jiang Wang, Chair of Faculty Council at SAIF; Prof. Chun Chang, Executive Dean and Professor of Finance at SAIF; andProf. Hong Yan, Associate Dean and Professor of Finance at SAIF and Associate Director of China Academy of Financial Research at SJTU attended the conference, which was presided over by Prof. Yan. About the NBER-SAIF series of conferences. The NBER-SAIF series of conferences are a set of biennial conferences jointly organized by SAIF and NBER. The NBER-SAIF conferences are designed: to build a broader research community on the economics of public policies, with particular reference to the policies that bear on financial markets in China and other emerging economies; to share rigorous, currentsresearch by NBER and SAIF researchers, leading international scholars and policy experts; and to promote research on economic policy issues of interest to both China and the United States.

June 28, 2018

Lars Peter Hansen: How to Navigate in the Mist of Uncertainties

On June 14th, 2018, “Lujiazui Forum - SAIF Night: Financial Reform and Risk Prevention under Economic Globalization" was jointly hosted by Shanghai Advanced Institute of Finance (SAIF) and CBN Research Institute. It greeted Prof. Lars Peter Hansen, Nobel Laureate in Economics in 2013 and Professor of Economics at the University of Chicago. Prof. Hansen gave a speech on the multiple factors of uncertainties, the complexity of statistics, the rational expectations theory in economic models, and the practical significance of uncertainty to climate change and financial market regulation. Panel discussants included: Dr. Yang Li, Chairman of the National Financial Development Laboratory; Dr. Chenghui Zhang, former Director of the Financial Research Institute of the Development Research Center of the State Council; Prof. Chun Chang, Executive Dean and Professor of Finance at SAIF; Dr. Z Yudong Yao, Chief Economist of Dacheng Fund; and Prof. Jianping Ding, Director of the Center for Modern Finance Research at Shanghai University of Finance and Economics. They discussed financial reforms and risk prevention under economic globalization with Prof. Hansen. According to Prof. Hansen, although financial market regulation is a complex issue, a complete set of complex solutions might be unnecessary, “because we have to admit that our understanding of financial markets and macroeconomics is limited. We blindly pursue complex solutions, while, in some cases, simple policies can help us avoid uncertainty.” He suggested that different models can be compared to find potential alternatives. In addition, simple and prudent policies should be adopted because they can avoid increasing uncertainty in an economic environment and perform well in different models. "The economy itself is already complicated. If we adopt complex policies, it will lead to more uncertainties. Moreover, many policies have room for self-discretion, which will add further uncertainties."

June 27, 2018

Michael Jordan on AI: Artificial Intelligence or Limited Intelligence

On May 24th, 2018, SAIF-CAFR Distinguished SpeakerSeries hosted by Shanghai Advanced Institute of Finance (SAIF), at Shanghai Jiao Tong University (SJTU) welcomed Michael Jordan. He is a Professor of both the Department of Electrical Engineering and Computer Science and the Department of Statistics of the University of California at Berkeley, and is a master of machine learning. He delivered a speech on the theme of "The Prospects and Challenges of Artificial Intelligence", which explained the precise implications of Artificial Intelligence (AI) and the possibility of AI commercialization. Feng Li, Deputy Dean and Professor of Accounting at SAIF, discussed the prospects and challenges of AI in both technical direction and business model, with Jordan. For the application of AIin the financial sector, Prof. Jordan believed that although AI has its own merits, it is impossible to replace human intuition, because human insights are extraordinary. When talking about excessive data in financial applications, he stated that in some domains, data is not a problem (the more data the better); while in other areas, it may cause confusion and should be avoided. In his keynote speech, Prof. Jordan analyzed the current position and practical principles of AI in applications and vividly demonstrated how machine learning can make progress in deep learning. He started with the word “AI” and pointed out: "AI is not a new thing. It used to be machine learning. It is still far from intelligence." In his opinion, real intelligence calls for forward-looking planning.

June 20, 2018

Professor Feng Li Wins "Seminal Contributions to Accounting Literature Awar ...

On June 14th, 2018 (EST), the American Accounting Association (AAA) named Prof. Feng Li, Deputy Dean and Professor of Accounting of Shanghai Advanced Institute of Finance (SAIF), as the Winner of the "Seminal Contributions to Accounting Literature Award" in 2018. AAA stated in the announcement that Prof. Feng Li won this honor with two independent papers, namely: “Annual Report Readability, Current Earnings, and Earnings Persistence" (2008,Journal of Accounting and Economics), and “The Information Content of Forward-Looking Statements in Corporate Filings – A Naïve Bayesian Machine Learning Approach” (2010,Journal of Accounting Research). AAA also announced that it would present this award to Prof. Li at the annual conference of the American Accounting Association in Washington on August 8, 2018. Prof. Li holds a Ph.D. in Accounting from the Booth School of Business, University of Chicago. Returning to China in 2015, he now serves as both Professor of Accounting and as Deputy Dean and Director of MBA Program at SAIF, Shanghai Jiao Tong University (SJTU). Prior to joining SAIF, he worked at the Stephen M. Ross School of Business of the University of Michigan and became the Harry Jones Associate Professor of Accounting, with tenure, in 2011. AAA is the largest accounting academic organization in the United States. Founded in 1916, it is also one of the most influential accounting associations in the world. The annual "Seminal Contributions to Accounting Literature Award" granted by AAA covers papers or findings published within 5-15 years prior to the award year. It is a major recognition of unique contributions to accounting education, practices, or future accounting research. The winning papers shall be original, innovative, elaborate, and well organized — based upon sound and appropriate methodology.

June 15, 2018

Nobel Laureate at SAIF Distinguished Speaker Series Oliver Hart: Maximizing Shar ...

On May 11th, 2018, Oliver Hart, Nobel Laureate in Economics in 2016 and Professor of Economics at Harvard University arrived at SAIF-CAFR Distinguished SpeakerSeries hosted by Shanghai Advanced Institute of Finance (SAIF), Shanghai Jiao Tong University (SJTU). He shared his insights on corporate governance and maximization of shareholder interests from the perspective of the mandatory functions of an enterprise. Prof. Chun Chang, Executive Dean and Professor of Finance at SAIF; Prof. Hong Yan, Deputy Dean and Professor of Finance at SAIF; and Jun Shao, Chairman of DT Capital, discussed corporate governance and development in the new era of industry-finance integration with Prof. Hart. In his keynote speech, Prof. Hart stated that there is a clear difference between corporate goals and the goals of individuals and governments.Thus, it is necessary to separate the activities that cause damage from those that make profits; government can perfectly internalize the external effects through laws and regulations. In general, shareholders’ interests do not equal the company’s market value, and companies should maximize the former instead of the latter. Regarding management decisions that may have significant social consequences, a company should consult its shareholders. Prof. Hart pointed out, "Although in many cases, a company represents the interests of its shareholders, which need to be maximized, it doesn’t necessarily mean to maximize its market value or profitability.” He also cited a number of examples. For instance, although an electric car is more expensive than an ICE car, many buyers still prefer electric cars, because they are concerned about the environment. Similarly, some people prefer free-range chicken to chicken raised in industrialized farms. Prof. Hart further stressed that in addition to cost effectiveness, many people also attach importance to other factors, such as social interests and the impact of their actions on the community. These consumers might be shareholders of certain companies, who hope that their investments will be good for the social welfare. Therefore, the companies they invest in will engage in “pro-social” behaviors, and be beyond profitability and market value. As a result, he revealed a brand-new perspective, “The money-making and pro-social behaviors of a company are interrelated and interdependent. It is impossible to separate its profitable activities from its social effects. Individuals need to realize social interests and internalize external effects through their behaviors.”

May 25, 2018

Leading China's Finance and Management Education - Strategic Collaboration betwe ...

Shanghai, May 16, 2018—The Shanghai Advanced Institute of Finance (SAIF), a leading educator in modern finance and management in China, today entered into a Memorandum of Understanding (MOU) with the Wharton School (Wharton) of the University of Pennsylva