Intruduction of the Shandong University Qilu Securities Institute for Financial Studies

Led by Shandong University, undertaken by Academy of Mathematics and Systems Science, Chinese Academy of Science, Beijing University, Fudan University, Nankai University, Tongji University, Shanghai Jiaotong University and University of Science and Technology of China, and recommended by National Natural Science Foundation of China and Ministry of Education, the 973 program Quantitative Analysis and Calculations in Financial Risk Control passed the review by Ministry of Science and got the financial support. Prof. Shige Peng from Shandong University was selected to be the chief scientist.

Based on the completed key program Mathematical Finance, Financial Engineering and Financial Management, which was part of our nation’s Ninth Five-year Plan, this program makes full use of our world-leading theories in mathematical finance, strengthens our ties and cooperations with the financial industry in developed countries and initiates original research that is suitable for Chinese financial market. It helps to protect our financial mechanism and to provide scientific norms for financial derivatives and the measurements of financial risks.

To promote a smooth and methodical development of our program and to tighten our cooperation among different groups, we held seminars on Financial Risk Measurement and the launching conference for our 973 program in October, 2007. As the chief scientist, Prof. Shige Peng elaborated on the importance of this program. He also set the final goal of the program, described the general structure and assigned different tasks to 6 groups. In July, 2008, we held in Huangdao the annual conference for academic exchange, in which researcher reported their progress in the last year. In October, 2008, our team and MITACS institute of Canada held the first China-Canada Seminars on Mathematical Finance. Both sides tried to build mathematical models for financial problems in the real world. This seminar provided a platform in which people from financial industry, government and universities can exchange their perspectives.

Besides these regular seminars, we are also trying to communicate and cooperate with the industry, aiming at maximizing our advantage in research and their advantage in practical experiences. We are now cooperating with Chunde Inc. to develop the risk data analysis platform RIDA and with Bank of Dongguan to develop rating system. With the development of these projects and the accumulation of our experiences, we are now expecting wider cooperations with the industry and wider applications of our theories.