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.
WANG Xian
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.
