On November 22, 220 economic scholars and market leaders gathered at NYU Shanghai for the Fifth Annual Volatility Institute Conference. This year’s conference theme was “Credit Risk in a New Era,” and was co-organized by the Volatility Institute at NYU Shanghai (VINS), the China Academy of Financial Research, and China Financial Futures Exchange. The conference featured a keynote speech from Robert Engle, entitled “Geopolitical Risk with Implications for Financial Stability and Credit Risk.”
Professor Engle explained a four-step action plan that could help the Chinese market mitigate the geopolitical stress/the SRISK that it is currently suffering from. He suggested the four strategies: 1. They (firms or banks) get relief from debt and a chance to reorganize.2. Rather than rolling over existing loans, it’s often better to make new more profitable loans and let the old loans default.3. Besides, it’s sensible to close unproductive businesses and support the growth of new better firms with lots of growth potential and employment opportunities.4. Courts or laws may partly protect small vulnerable creditors.
During the afternoon panel session, Professor Xin Zhou, Executive Director of the Volatility Institute at NYU Shanghai, moderated a panel discussion on the Credit Risk of Chinese Market, with four finance practitioners: Xiaogang Zhang, Executive Vice President of China Financial Futures Exchange; David X.Li, Professor of Finance at Shanghai Advanced Institute of Finance And Associate Director of Chinese Academy of Financial Research at Shanghai Jiaotong University; Xiaohong Xu, General Manager of Zhuhai Deltafit Financial Science and Technology Co., Ltd.; Jin’an Li, Chief Strategy Officer of GOHOAMC。
For more, check out this video.