NYU Shanghai Volatility Institute Successfuly Hosts First-Ever Pudong Finance Forum

On March 31, 2015, NYU Shanghai and the Pudong Institute of Finance co-hosted "Financial Innovations: Opportunities and Challenge," the first-ever Pudong Finance Forum at Shanghai World Finance Center. Included among the participants were 2003 Nobel Laureate in Economics Professor Robert Engle, NYU Stern Finance Professor Menachem Brenner, NYU Shanghai Vice Chancellor Jeffrey Lehman, and Director of the Volatility Institute at NYU Shanghai Professor Wang Jianye. Distinguished Chinese scholars such as Hua He, Jun Qian, and Gang Zeng were invited as main guest speakers.

During the forum, guest speakers and experienced financiers discussed the opportunities and challenges of financial innovation in China. Via Skype, Professor Engle joined the discussion by introducing his studies on S-Risk, specifically analying the S-Risk in countries like China, Japan, and the United States. He suggested further financial reform in China’s bank industry.

Professor Brenner led the discussion on the history and development of financial derivatives and the VIX Index, emphasizing the important role volatility plays in trading strategy, risk management, and the pricing of financial derivatives. Participants also gained a deeper understanding of the VIX Index’s application to financial derivative markets.

After a brief tea break, Hua He (Professor of Financial Practice at CKGSB; President of Capula Investment Management Asia Limited) spoke about the recent development of the Chinese Hedge Fund Industry. Jun Qian (Deputy Director, China Academy of Financial Research and Professor of Finance at Shanghai Advanced Institute of Finance) opened up new perspectives on analyzing the structure of China’s financial system and potential risks. Afterward, Gang Zeng (Assistant Director of Capital Markets Institute, Shanghai Stock Exchange) gave an informative overview of SZ50 ETF Option Trading.

At the end of the forum, Professor Wang led a panel discussion on "The Current State of Financial Innovation in China." Participants and guest speakers also had interactive discussions on the recent bull market phenomenon in China.