2018 China Financial Research Conference (CFRC 2018) was successfully held by Tsinghua PBCSF and Tsinghua University National Institute of Financial Research (NIFR) on July 7 and 8, 2018. Over 300 scholars from home and abroad gathered and conducted extensive and in-depth discussions on latest financial and economic issues in China.

Wu Xiaoling, Chairwoman and Dean of Tsinghua PBCSF, and Former Deputy Governor of the People’s Bank of China attended the Conference and gave a welcome speech. She believes that China’s economy is in transformation and so is the world’s perspective on China. Under the circumstances of China-US trade friction and international questioning of globalization, problematic issues have come up along with the transformation and upgrading of China’s economy. She hoped that excellent scholars could leverage their knowledge to offer wise insights and make contribution to world harmony and China’s progress.

Wu Xiaoling is delivering a speech

Deborah Lucas, Distinguished Professor of Finance at MIT Sloan School of Management, spoke on improving the philosophy of public finance policies in her keynote speech Introducing Financial Approaches into Public Finance: Theory, Examples and Future Directions”. She believed that governments should measure capital cost as what large private enterprises do. As for now, capital cost is only regarded as interest rate of government borrowing, while government’s underestimating capital cost will bring impacts on different aspects such as implementing measures, policy transparency and resource allocation. Lucas proposed to introduce financial valuation approach into the public finance, and suggested applying economic profits in the calculation of capital cost.

Deborah Lucas

Keynote Speech

CFRC 2018 calls for papers from November, 2017 to March, 2018. 361 effective submissions from across the world were received, covering key fields in China’s finance as current financial hotspots, monetary policies, political economy of finance, investment behavior, behavior finance, corporate finance and governance, China financial market, capital market, asset pricing. Through the evaluation by the review board, 36 papers were selected to be presented and discussed at the conference. The admission rate was 10%. The Conference’s review board consists of 53 prominent scholars from home and abroad. Zhou Hao, Associate Dean and Unigroup Chair Professor of Finance at Tsinghua PBCSF, held the position of board chairman, and Zhang Xiaoyan, Assistant Dean and Xinyuan Chair Professor of Finance at Tsinghua PBCSF, as executive chairwoman.

The Conference set two best Chinese paper awards, two best English paper awards, and two new structural finance paper awards to encourage in-depth research on China’s financial from excellent scholars worldwide. Prof. Zhang Xiaoyan delivered a keynote speech for the Conference and hosted the award ceremony.

Zhang Xiaoyan

Best Chinese paper award was presented by Ms. Wu Xiaoling to Relationship, Relief on Financial Constraints and Investment Adjustments by Zhang Xiaoqian and Liu Xiaolei, and Liquidity, Valuation Level and Multi-layer System of NEEQ Stocks by Huang Xinming, Liu Yuzhen and Liu Qi.

Best English paper awards were presented by Deborah Lucas to Housing Booms and Shirking by Gu Quanlin, He Jia, and Qian Wenlan, and Punish One, Teach A Hundred: The Sobering Effect of Punishment on the Unpunished by Francesco D’Acunto, Michael Weber and Xie Jin.

 New structural finance paper awards were presented by Prof. Zhou Hao to The Political and Financial Economics of Withdrawn Privatizations by Gabriele Lattanzi and William Megginson, and Government Affiliation and Fintech Industry: The Peer-to-Peer Lending Platforms in China by Jiang Jinglin, Liao Li, Wang Zhengwei and Zhang Xiaoyan.

(From left: Jiang Jinglin, Wang Zhengwei, Zhou Hao, and William Megginson)

To meet the needs of China’s reform and opening-up, and to promote financial research and international exchanges, CFRC has been successfully held for two years since 2016. Every year, experts and scholars on China’s financial issues are invited from across the world to PBCSF to exchange insights and join discussions. CFRC 2018 provides a high-level international platform for academic exchange. Through in-depth research and discussion on China’s financial issues, attendants will gain a more comprehensive understanding of China’s financial issues. The Conference had 12 sessions, including 9 English sessions and 3 Chinese ones. Over 300 people attended the Conference. The Conference is devoted to promoting quick application of latest research outcomes into practice, advancing the development of China’s modern financial system, encouraging financial innovation, and contributing to the reform, development and innovation of China’s financial market.