On 23rd September, Professor Guo Ming from the School of Banking and Finance, University of International Business and Economics was invited to the Faculty of Business, at the City University of Macau. Professor Guo gave a special lecture to Year Three BAE students on the topic of “The Process of the Capital Market in China”. Students benefited a lot from the lecture.

Professor Guo introduced the achievements and existing problems of the Chinese capital market in the past twenty years. She took the stock market crash happened in June to September this year as an example, pointing out the gap between the stock market of China and the developed stock markets of USA and Hong Kong. Professor Guo also explained the market mechanism in China, and how it uses the Initial Public Offering Price (IPO). She used the example of China Mobile Communication Corporation to illustrate the pricing method. Professor Guo emphasized that the market forces, also known as the forces between the contracting parties and the underwriter, determine pieces on the Chinese capital market.

Afterward Professor Guo explained the inquiry system, which is a new pricing method in China. She pointed out that the market forces are constantly increasing in power after four reforms, while the executive power is decreasing. As exemplified by the inquiry system of Bank of China in 2009, Professor Guo further suggested that the market forces and the rationality and feasibility of the executive power are both strengthening in absolute terms.

In conclusion, Professor Guo considered the Chinese capital market to be successful in recent years. Professor Guo reckoned there will be bright prospects for China’s stock markets and for the economy.

Students interacted with Professor Guo after class for a discussion of economic issues. They absorbed deeper knowledge in related to the pricing model of new shares and fundamental economic theories.

Mr. Wicky So, Director of Administrative Division of City U, and Dr. Eva Khong, Associate Dean of Faculty of Business of City U, attended the lecture.