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Tsinghua PBCSF Co-Hosted “Systemic Risk Prevention and Crisis Disposition” Seminar


On June 9th and 10th 2018, Department of International Affairs of China Securities Regulatory Commission (CSRC), PIFS at Harvard University, and Tsinghua University PBC School of Finance (PBCSF), jointly hosted the “Systemic Risk Prevention and Crisis Disposition” Seminar. The seminar is organized by National Equities Exchange and Quotations (NEEQ), and sponsored by Harvard China Fund. Ms. WANG Xian, Deputy Chair of Tsinghua University National Institute of Financial Research (NIFR) and Director of Listed Company Research Center, NIFR, moderated the seminar. Experts from the Supreme People’s Court, PBC, CSRC, CBIRC, universities, research institutes and four U.S. experts joined the discussion on regulation of systemic financial risks and crisis disposition. 


Hal Scott, Director of Program on International Financial Systems and professor at Harvard Law School, and WU Xiaoling, Chairwoman and Dean of Tsinghua PBCSF made the welcoming speech. WU Xiaoling, pointed out that the 2008 financial crisis and other crisis experienced in different countries, reveals that a healthy and orderly financial market will advance economic prosperity and social development, and will bring depression otherwise. The continuous discussions between regulatory bodies and academic research institutes will help to utilize regulatory system, enhance regulation efficiencies, and prevent regulatory arbitrage. Tsinghua PBCSF will serve as a bridge connecting academia, government and industry, to jointly promote the perfection of regulatory system and healthy development of financial market.

WU Xiaoling

FANG Xinghai, Vice Chairman of CSRC, spoke on international cooperation on securities regulation. He pointed out that fundamental laws and regulations have been established for cross-border cooperation on the regulation of China capital market. Under the framework of bilateral and multi-lateral regulatory cooperation, we conducted cross-border enforcement cooperation with peers overseas, and made achievements in terms of cracking down securities and futures crimes and defending investors’ legitimate interest. CSRC will continue its exploration and reform on laws and regulations and enforcement mechanism of cross-border regulatory cooperation.

FANG Xinghai

Timothy Massad, Former Chairman of U.S. Commodity Futures Trading Commission (CFTC), senior fellow of Harvard University John F. Kennedy School of Government, and Adjunct Professor of Law at Georgetown University Law School, gave a speech on “Are We Safe Today? Reflections on the 10th Anniversary of the 2018 Global Financial Crisis”. He analyzed the causes of the crisis and lessons learnt, from the aspects of subprime mortgage, short-term financing, asset securitization. He also gave an in-depth overview of crisis disposition and regulation reform in U.S. post crisis, including Troubled Asset Relief Program (TARP), adjustment in asset disposal, monetary policy, fiscal policy and crisis disposal.

Timothy Massad

Peter Fisher, former Undersecretary for U.S. Treasury Domestic Finance, and senior fellow at the Center for Business, Government & Society of Tuck School of Business at Dartmouth, gave a speech titled “A Pragmatist’s Guide to Supervising Financial Firms in Conditions of Uncertainty”. He believes financial regulators should observe the system from the perspectives of probability, uncertainty and volatility; they should question and consider the probability of errors based on Bayes’ theorem and consistently revise their opinions. He explained from a practical perspective how to monitor financial corporation, manage capital requirements and define responsibility in financial system under uncertainties.

Peter Fisher

Douglas Arner, professor of law at Hong Kong University, gave a speech on "Regulation of Financial Technology". He made in-depth discussions on topics including Fintech’s challenge to regulation, regulatory responses, regulation technology (RegTech), design of financial infrastructure, and future cooperation opportunity and challenges. He stressed that blockchain is a safe, transparent, and irreversible information system that cannot be tampered with. On that basis, a series of related transaction structure can be built. Besides, TechFin is an important opportunity, but still a challenge to monopolies regulation and cyber security.

Douglas Arner

Professor Hal Scott made a speech on “Trump Financial Regulatory Reform”. He made an in-depth analysis of reform of banking and capital market regulation. He stressed that the focus of banking reform would be the stress test, while the primary goal of capital market reform would be to disclose the political intention behind. Another focus of capital market reform is to disclose the risks of private companies.

Hal Scott

At the end of seminar, Hal Scott made the closing speech. He said the seminar was very successful and hoped he could have the opportunity to come back for more extensive and in-depth discussions.


>Tsinghua National Institute of Financial Research