May 9-10, 2008. Shanghai. -- An impressive roster of influential government officials, top executives from the domestic and international world of finance, and members of the financial media, attended the Shangri-La Hotel in Pudong for the first CEIBS Lujiazui Forum. The two-day event, held with the permission of the State Council, was entitled “Deepening Financial Reform  - China and the World.” The event was co-hosted by the People’s Bank of China (PBC), China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), China Insurance Regulatory Commission (CIRC), and the Shanghai Municipal Government.

During the May 9 plenary session, which examined the wider issue of “Shanghai’s International Financial Centre Drive,” CEIBS President Zhu Xiaoming spoke on “Financial Talents, the Essential Resource of Financial Centres.” To stress the importance of employees, President Zhu pointed out that human resources is the #1 factor in the Global Financial Centres Index (GFCI). President Zhu added that EMBA-level education is a crucial component in the development of a city’s financial talents. He also stressed that MBA programmes are the major source of the global financial skill pool, with 27 percent of MBA graduates beginning their careers in the financial industry.

Drawing comparisons with the experiences of London and Tokyo, President Zhu called for Shanghai to strive to attract and develop more talents in the financial sector. He pointed out that, historically, special taxation policies had played a major role in attracting international talents to Hong Kong and suggested that this was an option that Shanghai should explore. In addition to the taxation issue, the city could look at other talent retention methods, along with policies that would help stabilize the financial environment and create sound development, the CEIBS President suggested.

Prof. Zhu stated that transparent and efficient regulatory environment are essential in order for Shanghai to remain competitive as an international financial centre. He argued that necessary elements include an adequate pool of qualified financial judges and lawyers, as well as educational programmes that will strengthen knowledge of financial regulations. According to Prof. Zhu, these are the fundamentals for solidifying the financial talent pool of Shanghai. The CEIBS President stressed that while many financial cities place great importance on the number of high-rises built by financial firms, the number of banks, security firms, and insurance companies, Shanghai should place even greater importance on when the city’s new batch of financial talents will emerge. His speech elicited strong interest from audience members and reporters, who swarmed around him as he exited the stage.

Among those listening keenly to Prof. Zhu’s speech were senior officials from the financial industry such as: Premier of the State Council Wang Qishan, Governor of the People’s Bank of China Zhou Xiaochuan, Chairman of the China Banking Regulatory Commission Liu Mingkang, Chairman of the China Securities Regulatory Commission Shang Fulin, and Chairman of the China Insurance Regulatory Commission Wu Dingfu. Government Officials from Shanghai Municipal Government who attended were: Secretary of Shanghai Municipal Party Committee Yu Zhengsheng, Mayor of Shanghai Han Zheng, and Vice Mayor of Shanghai Tu Guangshao. Other international and domestic government officials, industry leaders present at the event were:

- Governor of Reserve Bank of Australia Glenn Stevens
- US Treasury Under-Secretary David McCormick
- Chief Executive of Hong Kong Monetary Authority Joseph Yam
- CEO of Hong Kong Securities and Futures Commission Martin Wheatley
- Managing Director of Monetary Authority of Singapore Heng Swee Keat
- Executive Director of Government of Singapore Investment Co. Tony Tan Keng Yam
- Former World Bank President James Wolfensohn
- Chairman & CEO of Morgan Stanley John Mack
- Chairman & CEO of Bank of America Kenneth Lewis
- President of China Development Bank Chen Yuan
- Chairman of China Investment Corporation Lou Jiwei
- Chairman of Industrial and Commercial Bank of China Jiang Jianqing
- President of Bank of Communications Li Jun
- President and CEO of China Merchants Bank Ma Weihua
- Chairman and President of Export-Import Bank of China Li Ruogu
- CEO of China International Capital Corp. Zhu Yunlai
- Chairman of Everbright Group Tang Shuangning. and
- President of CDH Investments Wu Shangzhi.

As the sole academic institution among the four forum host entities, CEIBS was integrally involved in the planning of the event. For example, CEIBS President Zhu and CEIBS Vice President and Co-Dean Zhang Weijiong served as the Deputy Director of the Lujiazui Forum Organizing Committee and Deputy Secretary-General of Secretariat of Lujiazui Forum, respectively. Professor of Finance Chun Chang and Professor of Finance and Economics Xu Bin were members of the Forum’s Academic Committee. CEIBS also organized brain storming events, drafted and constantly updated forum topics, agenda, and speakers’ roster.

Vice Premier Wang Qishan delivers a keynote speech at Lujiazui Forum

CEIBS faculty also played a key role during the event with CEIBS Professor of Economics and Finance Xu Xiaonian speaking on “The Future of the International Monetary System”. Professors Chun Chang and Xu Bin were the respective chairs for the panel discussions “Two-Way Opening of China’s Financial Markets” and “China’s Foreign Exchange Regime Reform and RMB Capital Account Convertibility”. In addition, adjunct professors of CEIBS Lujiazui International Finance Research Centre (CLFC) Wu Xiaoling, Tu Guangshao, John Stuttard, Xiang Junbo, Zhu Min, Fang Xinghai either chaired panel discussions, or delivered speeches.

Shanghai International Financial Centre

CEIBS actively supports the founding and development of the Shanghai financial centre, regularly contributing its resources and its team of international faculty to this effort. It is for this reason that CEIBS founded the CEIBS Lujiazui International Finance Research Centre (CLFC) in October of 2007. The vision of the CLFC is to serve as an authoritative and influential think tank for the development of Shanghai as an international financial centre. The CLFC’s monthly, high profile Finance Salon series has already attracted an impressive roster of keynote speakers including: Zhu Min, John Stuttard, Gao Xiqing, Wu Xiaoling, Wu Jinglian, and other global financial heavy weights. The research centre is situated in the heart of the Lujiazui Finance and Trade Zone and offering with breath-taking views of the Bund from the villa’s balcony.

CEIBS President Zhu expects that the CLFC Finance Salon series and the Lujiazui Forum will be mutually beneficial events. “The salon series will be a rehearsal for the forum, while the forum will reflect the essence of the salon series,” Prof Zhu said.

CEIBS President Zhu speaks at the Lujiazui Forum

CEIBS Vice President and Co-Dean Zhang Weijiong believe that the Lujiazui Forum can help elevate the development of the Shanghai International Financial Centre to new heights as a recognized high-level platform for substantive discussions that can help shape the city’s economic future. The Lujiazui Forum is the first of its kind in China. “We have thought about events at this scale ever since the birth of the CLFC. The development of Shanghai International Financial Centre needs an academic wing,” said Deputy Director of the CLFC Professor Chang Chun in explaining the concept behind the forum.

As CEIBS’ representative from the forum organizing committee, Assistant Director of the CLFC Liu Shengjun outlined, “The focus of the monthly Finance Salon is to dig deeply into pressing issues and to search for solutions. But the Lujiazui Forum is most importantly used to predict the future.” With half of the forum dedicated to audience participation after speakers had shared their views, the event offered a platform for frank discussions. “Our biggest hope is to use this opportunity to form a network for finance experts and in turn create the necessary culture for the international financial scene. This is an important step in the building of the Shanghai International Financial Centre,” said Assistant Director Liu.

Secretariat of Lujiazui Forum