On the afternoon of April 26, 2018, Prof. Guo Jinlong of Institute of Finance & Banking, Chinese Academy of Social Sciences (IFB) was invited as a guest to “The Chen Daisun Theoretical Economics Lecture” at Institute of Economics and delivered a speech titled “Financial Mechanisms and Household Wealth Management”. The lecture was chaired by Prof. Gao Shujuan.
Prof. Guo has long been engaged in finance and insurance studies and has chaired and completed a number of national and provincial major research projects. He has unique insights into China’s current financial mechanisms and household wealth management.
Prof. Guo made a deep and thorough analysis ranging from types and functions of financial assets and financial markets to the development history of China’s financial market within two hours. Meanwhile, he provided unique explanations about household wealth management and related topics concerned about by everyone. He mentioned that household wealth management was composed of three parts, i.e., household asset management, household liability management and household income & expenditure management. At present, most households usually pay attention to asset management but overlook liability management which, in fact, is not only necessary, but more important than asset management under certain conditions. With regard to objectives of household wealth management, he deemed it more critical to make ends meet, maintain the liquidity and safety of household finance and achieve reasonably matched assets and liabilities relative to wealth growth. Only on this basis can household wealth fully benefit from national economic growth and be maximized.
Finally, Prof. Guo offered suggestions for household wealth management and had warm discussions with present teachers and students.
Whilst providing present teachers and students with access to more practical financial knowledge, the lecture deepens their understanding of the nature and operation of wealth mechanisms and helps them combine theories with practice, analyze realistic problems in society with economic theories they have learnt, and learn how to understand and achieve scientific money management.
(Written by Zhang Yiming)
