The 20th Tao Xiang International Finance Lectures was held in Renmin University of China (RUC) on the afternoon of Nov. 22nd, chaired by Professor Tu Yonghong with the School of Finance, RUC. Present at the lecture was Dr. Cui Xisu, Head of the Industrial Management Office, the Business Department of the Construction Bank of China, who delivered a speech on the topic of “Industrial Finance Theories and Practice of Commercial Banks in the New Era” followed by comments from the Associate Professor Hu Bo with the School of Finance, RUC.

Dr. Cui stressed the indispensable position and function of banks in industrial finance. According to her, the philosophy was not to dodge risks, but to resolve them through innovation, among other methods. With industrial upgrading and transformation, industrial finance will have profound implications as a new business format as well as a significant industrial strategy and policy. To date, however, industries in China have not been effectively connected with finance.

Accounting for 80% of the secondary industry at home, manufacture plays an important role in China, which holds the most varieties of the sector and used to undertake a great amount of international manufacture business. But the industrial upgrading has seen a gradual shift of such business to the Southeast Asia, while a industry chain is formed in China, which helps manufacture to gain independence with reduced reliance. Industrial development is inextricably linked to policies. To provide dynamic and all round support for the transition of the industries to middle and high end ones, we must gradually withdraw the dependence on the supply system of the industry chain overseas and strive for safe, efficient and self-reliant advancement of our industries, Dr. Cui pointed out.

Dr. Cui went on to expound how to divert capital to different sectors and enterprises in accordance with the national policies from the perspective of policy tools in the banks. Various financial institutions including the venture capitals play different roles in stages of development of the companies and the banks make financial innovations to meet the demands of real economy, Dr. Cui iterated.

Dr. Cui also encouraged students present to carry out research and survey and test theories in practices during the university years, noting that they are conducive to the identification of future path, since they accelerate the formation of industry acumen and help the cultivation of professionalism.

The lecture rounded off with Prof. Hu’s comments, in which he made the following four statements. First, the point in learning and studying industrial finance is to realize that finance is meant to serve the real economy. Second, the importance of the comprehension of industries consists in the corresponding financial services of different financing needs. Third, students must strengthen their ability of financial analysis and maintain a balance between internships and learning with a proper understanding of their relation. Fourth, while integrating industries and finance, we must focus on the needs of industries and pay attention to the interaction and cooperation between these two.