Robert C. Merton, a Nobel laureate in economics, visited the CEIBS (China Europe International Business School) Lujiazui Institute of International Finance on July 18 and delivered a speech on the risks and measurements of asset management.

Zhu Xiaoming, president of the CEIBS and a council member of the CEIBS Lujiazui Institute of International Finance, attended and gave a welcome speech. Liu Shengjun, executive vice-president of the CEIBS Lujiazui Institute of International Finance, hosted the activity.

Professor Zhu pointed out that over the next decade, three financial trends are worth noting. First, financial marketization is unstoppable. It will create huge room for financial innovation. Second, the two-way financial market will both welcome foreign institutional investors and encourage Chinese institutional investors to allocate assets on a global scale. Third, to build an international financial center, Shanghai needs more financial products, financial tools and internationalized institutional investors.

Robert C. Merton is a professor at the MIT Sloan School of Management and professor emeritus at Harvard University. He was a George Fisher Baker Professor of Business Administration from 1988 to 1998 and held the John and Natty McArthur University Professorship from 1998 to 2010. He is the former president of the American Finance Association, a member of the National Academy of Sciences, and a fellow of the American Academy of Arts and Sciences.

Merton won the Nobel Prize for expanding the Black-Scholes-Merton formula, a way to price stock options. His book Continuous-Time Finance won great acclaim from Global Finance magazine.

Robert C. Merton(on the right), a Nobel laureate in economics,and Zhu Xiaoming(on the left), the president of CEIBS (Photo from sina.com.cn)