Tao Xiang International Finance Lectures (No. 5): The Integration of Industry and Finance

On September 28, Tao Xiang International Finance Lectures (No.5), co-organized by IMI and School of Finance of Renmin University, was held at RUC. Dr. Ding Yi, Chief Executive and Party Branch Secretary of Huaneng Capital Service Co., Ltd. of China Huaneng Group, made a keynote speech on the integration of industry and finance. The meeting was chaired by Prof. Tu Yonghong, deputy director of IMI. Professor He Qing, from the School of Finance of RUC, was also present at the meeting. In the speech, Dr. Ding Yi first compared the different targets and measures of financial regulations between China and the West, and introduced the historical evolution of financial organizations and regulating measures in the United States, pointing out that after the 2008 financial crisis, global financial regulations are intensified and that the governments began to channel capital into real economy. She then introduced the case of General Electric (GE) in integrating industry and finance, and gave an in-depth analysis on GE’s financial business structure, business model, development before and after the crisis, and GE’s business adjustment as well as its exit from financial services in recent years. Later on, starting from the PV Fund of China Huaneng Group, she gave a detailed introduction to the Group’s practices in integrating industry and finance. Doctor Ding commented that, with more and more industries opening their financial services to the capital market, diversifying their financing channels and conducting mergers and acquisitions as well as restructuring, the trend of diverting capital from the virtual economy to the real economy now is in full swing, and thus, financial industry can only thrive by relying on and serving the real economy.

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