On March 1, 2023, Professor He Jia was invited to give a lecture on "What are the general laws and Chinese characteristics of the capital market" at the T5-105 lecture hall for distinguished persons of FBM. Teachers, students and social figures from UIC actively participated in and exchanged views. The lecture was hosted by President Liu Wenbin.

Prof. Steve Liu (Dean of FBM) Presented Souvenir to Prof. He

Professor He Jia is a chair professor of Shandong University, a truth-seeking chair professor of Zhejiang University, and the chairman of the Internet Investment and Financing Working Committee of China Internet Association; He has served as a member of the Planning and Development Committee of the China Securities Regulatory Commission, the director of the Comprehensive Research Institute of the Shenzhen Stock Exchange, and the independent director of CITIC Securities and other companies. His main research direction is China's financial reform and development, financial science and technology and financial stability. His work is "On the main contradictions and stable development of China's financial system", and he has published papers in several well-known academic journals such as Journal of Finance.

Prof. He’s Lecture

Professor He Jia pointed out that China's financial system is facing structural supply-side reform, and the key point is the analysis of supply-demand relationship. Unlike the economic market, the general rule of the financial market is high liquidity, so its pricing system focuses more on the consideration of "price" rather than "quantity", and all local problems of the financial system are inevitably global. China has established a comprehensive financial regulatory system, and has studied many financial pricing models on this basis. Professor He Jia specifically mentioned that a new problem is how to design a suitable model for emerging digital assets.

In combination with the construction and improvement of the socialist market economy system with Chinese characteristics and the market phenomenon of some real estate enterprises in recent years, Professor He Jia further pointed out that China's financial system also needs the gradual reform of "feeling the stone and crossing the river", rather than the top-level design in one step. The fundamental problem is how to establish the financial theory of the socialist market economy with Chinese characteristics.

With regard to the gradual reform, Professor He Jia gave a successful case, involving the securities restructuring and equity split from 2003 to 2006. After this reform, the securities companies survived the two financial crises in 2008 and 2015. However, there are also hidden dangers in the gradual reform, which may bring structural arbitrage opportunities, such as the Yu'e Bao project under Ant Financial Services and the RMB return mechanism in Hong Kong. The sufficient and necessary condition for the establishment of a financial pricing system is the absence of structural arbitrage opportunities. As a supplement, Professor He Jia also mentioned the recent crypto digital assets and virtual currency futures in Hong Kong.

The contradiction between the overall nature of the financial problem and the local nature of China's gradual reform is the main contradiction of China's financial system. This has led to the structural arbitrage opportunities of gradual reform and the serious distortion of the pricing system of the entire financial system. The capital market is a partial system of the financial system. Maintaining a partial pricing system and serving the national strategy are the main tasks of China's capital market. Adhering to the socialist system, adhering to the leadership of the CCP, developing the market economy and building a financial system with Chinese characteristics still face many challenges and opportunities.

Professor He Jia shared his experience and experience of long-term financial academic and policy research and participation in financial supervision and financial practice. The whole lecture was approachable, and the atmosphere was lively. The audience benefited a lot. The lecture ended smoothly with warm applause.

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