Professor Scholes is making a speech.

Professor is talking with Prof. Xu Zhenhua, president of GDUFS.

Prof. Scholes is answering questions.

China has to develop its own financial system so as to make a stand on global arena in the post-WTO era, says Prof. Scholes in his speech in Guangdong University of Foreign Studies (GDUFS) this morning (Nov. 4th).

He said that China has seen great development in its productivity, yet it is not a financial economy and might face huge risks after opening to the world economy.

Prof. Scholes, winner of the Nobel Prize 1997 on economy and one of the advisors of Guangdong's governor, delivers a speech on financial crisis management in GDUFS today. On his arrival, he received a warm welcome by Prof. Xu Zhenhua, president of GDUFS. They exchange opinions on higher education in both countries. They both agree that to be competitive in the society after graduation, a student has to master wide-range of skills and knowledge.

In his speech, Prof. Scholes makes a brief introduction on the financial risk management, and adopts these theories to analysis current problems China is facing in finance.

He thinks China is now a rather simple market. The capital and the risk transferring services in the market are rather limited. So the average return rate here is not so attractive.

Once China, especially Guangdong, an export base of goods and services, can construct a better financial environment and its banking and insurance systems, the financial risk of FDI (foreign direct investment) will lower down.

And proactive communication with foreign enterprises is also important in the whole process.

Editor: Donald