The 1st China-Australia Joint Forum on Financial and Economic Development Was Held in Shanghai University of Finance and Economics

On November14, the “1st China-Australia Joint Forum on Financial and EconomicDevelopment”, sponsored by ChinaAcademy of Public Finance of SUFE and jointly organized by the Faculty ofBusiness and Economics of Macquarie University of Australia, was held in ShanghaiUniversity of Finance and Economics. A number of well-known scholars, personagesfrom government and business circles from China and Australia attended theforum to exchange ideas and opinions on the important issues of finance,government finance, business environment and other issues in the currenteconomic development, and propose suggestions for the next stage of economicwork.

The opening ceremony in themorning was presided over by Liu Xiaochuan, the executive dean of China Academyof Public Finance of SUFE. And, Xu Fei, the executive deputy dean of ShanghaiUniversity of Finance and Economics, Stephen Brammer, the executive dean of the Faculty ofBusiness and Economics of Macquarie University, delivered speeches respectively.

At the beginning, Xu Fei, the executivedeputy dean of Shanghai University of Finance and Economics, extended hissincere welcome to the distinguished guests attending the forum, and expressedthat a strategic cooperation agreement was concluded by CPFI of SUFE and MacquarieUniversity in October 2018 and the two sides have carried out close cooperationat various levels from then on. The Sino-Australia Seminar (Forum) of Financial Developmentheld this time is also one of the important achievements of cooperation betweenthe two sides, as well as an important carrier of cooperation. The holding of seminarscan create an excellent exchange platform for scholars of both sides, so thatthey can better find and know scholars with the same interests and researchfields as themselves, thus making cooperation more efficient. The seminar thistime is the 1st seminar jointly held by CPFI of SUFE and theFaculty of Business and Economics of Macquarie University. In the future, bothsides will continue to hold such seminar in the form of rotating hosts in Chinaand Australia in turn.

Stephen Brammer, the executivedean of the Faculty ofBusiness and Economics of Macquarie University, expressed that we attach greatimportance to cooperation projects with Shanghai University of Finance and Economics,and will work together in the next few years. It is known that currently thewhole world is undergoing great changes in terms of financial market, financialtechnology and population structure, which also means it is good time for moreexchanges between the two sides. It is hoped that researchers from both ShanghaiUniversity of Finance and Economics and Macquarie University can jointly establisha research team to achieve some research goals, and that the seminar will be afruitful seminar.

In the first stage of keynotespeech, professor Mollica, the deputy dean of the Faculty of Business andEconomics of Macquarie University, firstly delivered a keynote speech themed on“Crossing Financial Boundary, Price Limit and Its Magnet Effect” on discussingthe circuit breaker mechanism and magnet effect in the financial market, andpointing out that the opening of financial market in China is an action ofgreat significance, as China has its own distinctive characteristics and its domesticinvestors will not be negatively affected. He believes that the rule of 10%limit move of A-share market should be revised, because sometimes it willaffect market liquidity, sometimes it will accelerate the magnet effect, andaccelerate the stock price to the limits.

Later, Dai Guoqiang, professorfrom the School of Finance of SUFE, delivered a keynote speech themed on “Difficultiesin China’s Financial Supply Side Reform”. He firstly pointed out the closerelationship between China’s finance and economy and the special relationship amongeconomy, finance and banks. And he believes that there are three main problemsin China’s finance. The first is the increasing value-added of finance, thesecond is the over issuance of money and credit, and the third is the high debtleverage. To this end, he put forward four policy suggestions: 1, It is necessaryto do a good job in system guarantee, and make financial markets and traderules more adapting to the need of changing economic structure to promoteeconomic development by deepening reform and legal system construction; 2, Itis necessary to implement good policy coordination, and make the macro policymix more reasonable and effective, and stabilize expectations, the marketand confidence to promote consumption and investment growth by rigorousscientific research and demonstration; 3, It is necessary to promote thedevelopment of science and technology, and make the society form a sense ofrespect for science to enhance the core competitiveness of our country, andimprove the effective supply to guarantee employment by education reform andvalue cultivation; 4, It is necessary to achieve cultural guidance, and makepeople have healthy aesthetic ability and choice ability by propaganda guidanceand aesthetic edification to promote sound growth in consumption andinvestment, and enable people to have a better living environment and abeautiful home.

Atthe subsequent exchange and discussion session presided over by Abhay Singh,senior lecturer of Department of Applied Finance of the Faculty of Business and Economics of Macquarie University, professor Mollica, thedeputy dean of the Faculty of Business and Economics of Macquarie University,and professor Dai Guoqiang of the School of Finance of SUFE respectively putforward their own views from their own work and research in response to theproblems of research direction and registration system of student projects, financingproblems in China, and problems of Mainland investment Hong Kong southwardinvestment proposed by the guests.

Inthe second stage of keynote speech, Zhang Muyang, associate professor of ChinaAcademy of Public Finance of SUFE, firstly delivered a keynote speech themed on“Current Situation and Challenges of the Cooperation between Chinese Governmentand Social Capitals”. He mentioned several problems faced by China’s PPP projects.1, there is the problem of “fake equity”, whichcan be understood as the problem of implicit government debt in essence. 2, Privateenterprises are not active in participation as social capital parties, and itis difficult to make a breakthrough in terms of the ownership of China’seconomic structure. 3, PPP project financial affordability. In general, Chinarelies on infrastructure construction to bring about high economic growth, whichincludes the contribution to GDP and the contribution of infrastructureconstruction to the improvement of economic activity. Over the past threedecades, rapid economic growth has been achieved in China, as a result, it isnot necessary to worry much about the debt problem, for when economic growthreaches a certain speed, it can cover future debts. But now as the growth rateis not so fast, it is necessary to consider the debt risks, to think aboutwhether so many projects are indeed required, which projects need to be done,and how much costs needed to complete these projects, which may be a moreimportant issue requiring consideration in the future.

Soon afterwards, MartinaLinnenlucke, director of Center of Enterprise Sustainable Development andEnvironmental Finance of the Faculty of Business and Economics of MacquarieUniversity, delivered a keynote speech themed on “Environmental Finance:Interdisciplinary Financial Research”, with some research works in sustainabledevelopment and environment talked about, and current research projectsintroduced. She said the lack of water and natural resources has brought a lotof pressure on emerging countries, which will, in the end, affect the wholeearth, bring the lack of vegetation effect, and causethe ecosystem in some regions to decline rapidly. Ecosystem is of vitalimportance, and is also very important for many enterprises. As agriculture ishighly dependent on the natural environment, and their research focuses on howenterprises face the lack of plants and natural difficulties. Climate changewill bring a lot of environmental policy changes, which is very important forenterprises with intensive carbon emission. The lack of transplantation willhave an impact on ecology, agriculture, and bring about other changes. Carbonemissions will also have related impacts like decline in agriculturalproductivity and pre ecological deterioration. Also, the lack of waterresources will bring pressure on water resources. And Climate change will alsohave a huge impact on tourism. All these changes will negatively affect theoperation and profits of many enterprises. In a word, the natural environmentwill affect the value creation of companies, which is the basis of theirresearch.

Later, at the exchange anddiscussion session presided over by Stefan Trueck, professor of BusinessAnalytics of the Faculty of Business and Economics of Macquarie University,Zhang Muyang, associate professor of China Academy of Public Finance of SUFE,and Martina Linnenlucke, director of Center of Enterprise SustainableDevelopment and Environmental Finance of the Faculty of Business and Economicsof Macquarie University, respectively put forward their own views from theirown work and research in response to the problems of environmental pollutionPPP project, social capital composition of PPP project, private-publiccooperation of PPP project and carbon emission trading mechanism proposed bythe guests.

Inthe afternoon, the 1st China-Australia Joint Forum on Financial andEconomic Development continued with three round-table sub forums divided.

Themedon “Macro and micro finance”, the round-table forum 1 was presided overby YuHong, deputy dean of ChinaAcademy of Public Finance of SUFE, and Vito Mollica, deputy dean of the Faculty of Business and Economics ofMacquarie University. At the forum, Zhu Xiaoneng, deputy dean of School ofFinance of SUFE, delivered the speech themed on “The Power of News”; Gary Tian,professor of Department of Applied Finance of the Faculty of Business and Economics of Macquarie University, delivered hisspeech themed on “Deleveraging,Market Liquidity and Capital Liquidity Crisis: Natural Experiment”; Wang Yin, standingassociateprofessor of School of Public Economy and Management of SUFE, delivered thespeech themed on “Difficulties in Financing for Public-private Joint Venturesin China and Possible Solutions”; and Yuanyuan Gu, senior researcher of Centerfor Health and Economics of the Facultyof Business and Economics of Macquarie University, made a statement themed on “Medical Reform in China:Choice of Medical Facilities for Urban Patients”. Subsequently, the distinguishedguests had a heated discussionabout the contents of the speeches and sharedtheir views.Finally, in response to the speeches delivered by the scholars ofthe round-table forum,Yu Hong, deputy dean of China Academy of Public Finance of SUFE, and Vito Mollica, deputy dean of the Facultyof Business and Economics of Macquarie University presented a summary.

Themedon “Sustainable Development and Emerging Fields”, the round-table forum 2 was presidedover by Zhang Muyang, associate professor of China Academy of Public Finance ofSUFE, and Abhay Singh, senior lecturer of Department of Applied Finance of the Faculty of Business and Economics of MacquarieUniversity. At the forum, Chen Yuanyuan, assistant to dean of the Institute forAdvanced Research of SUFE, delivered the speech themed on “Unexpected Consequences ofPolicy: Immigration Control Policy and Separation of Parents and Children inMegacities of China”; Lorne Cummings, deputy dean of the Faculty of Businessand Economics of Macquarie University, delivered the speech themed on “PhilosophicalThinking on Corporate Social Responsibility: the Integration of Confucianism,Legalism and Taoism”; Deng Xiaoying, associate professor of School of PublicEconomy and Management of SUFE, delivered the speech themed on “GreenPerspective of Responsible Investment”; and Martina Linnenlucke, director of Centerof Enterprise Sustainable Development and Environmental Finance of the Facultyof Business and Economics of Macquarie University made a statement themed on “Business Cases of Sustainable Development”. Subsequently,the distinguished guests made in-depth discussion and exchange on the contentsof the speeches. Finally, in response to the speeches delivered by the scholarsof the round-table forum, Zhang Muyang, associate professor of China Academy ofPublic Finance of SUFE, and Abhay Singh, senior lecturer of Department ofApplied Finance of the Facultyof Business and Economics of Macquarie University presented a summary.

Themedon “Finance and Taxation Policies”, the round-table forum 3 was presided over byLiu Zhikuo, associate professor of China Academy of Public Finance of SUFE, andPhilomena Leung, deputy dean of the Faculty of Business and Economics of Macquarie University. At the forum,Zhang Yi, associate professor of School of Public Economy and Management ofSUFE delivered the speech themed on “Health, Provision for the Aged, SubjectiveWell-being: Evidence from A Randomized Trial in China”; Stefan Trueck, professor ofBusiness Analytics of the Faculty of Business and Economics of MacquarieUniversity, delivered the speech themed on “Carbon Pricing Mechanismand Its Impact on Wholesale Electricity Market in Australia”; Xu Jing, lecturer of School of Public Economyand Management of SUFE, delivered the speech themed on “Assessment of Redistribution Efficiency and SocialWelfare Effectiveness of Government Safety Net Program: InternationalComparison”; and Henry Cutler, director of Center for Health andEconomics of the Faculty of Businessand Economics of Macquarie University, made a statement themed on “The Impact of TaxReimbursement and Tax Incentives on Private Health Insurance Members inAustralia”. Subsequently, the distinguished guests had a heated discussion aboutthe contents of the speeches and shared their views. Finally, in response tothe speeches delivered by the scholars of the round-table forum, Liu Zhikuo, associateprofessor of China Academy of Public Finance of SUFE, and Philomena Leung,deputy dean of the Faculty of Businessand Economics of Macquarie University presented a summary.

At the final closing ceremony,Liu Xiaochuan, the executive dean of China Academy of Public Finance of SUFE, PhilomenaLeung, deputy dean of the Faculty of Business and Economics of Macquarie University, Xu Fei, the executive deputydean of Shanghai University of Finance and Economics, successively presentedsummary of the 1st China-Australia Joint Forum on Financial andEconomic Development, and expressed warm congratulations on the successfulholding of this seminar and sincere thanks to the scholars and leaders ofShanghai University of Finance and Economics and Macquarie University, all the teachersand students attending the seminar.