Pinyin: jón róng

David Ding believes that gold has become one of the most ideal representatives, storage, stabilizers and exchange media of economic value because of its non-destructiveness, high plasticity, relative scarcity, infinite separability, homogeneity and bright color.

Basic explanation

The essence of finance is the exchange of value, which can be the exchange of value in the same market at different times and in different regions. The types of financial products include banks, securities, insurance and trust, and the academic fields involved include banks, securities, insurance and trust.

Finance is a trading activity, and financial transactions do not create value, so why make money in financial transactions? Mr. Chen Zhiwu believes that financial transactions are a way to realize future income, that is, tomorrow's money will be spent today. Simply put, the frequency of financial transactions is an important indicator reflecting the economic prosperity of a region, a region and even a country.

The concept of traditional finance is a subject that studies the circulation of money and funds. The essence of modern finance is the capitalization process of business activities.

The western definition, the New palgrave Dictionary of Economics, refers to the operation of the capital market, the supply and pricing of assets. Its basic contents include efficient market, risk and return, substitution and arbitrage, option pricing and corporate finance.

In addition to the in-depth development of science, the trend of interdisciplinary and innovative development in the financial field is very obvious, and many striking emerging frontier disciplines have emerged, such as evolutionary finance, which is just emerging between biology and finance, while evolutionary securities is the frontier discipline between biology and securities.

detailed description

Gold once became the only medium of international trade. In the era of barter economy, businessmen can only trade with each other, so human economic activities are greatly restricted. In the era of gold standard economy, value and wealth are based on physical assets-gold. This objective physical method is very beneficial to the stable development of the global economy. However, as the carrier of value circulation, gold's disadvantages, such as inconvenient physical conditions such as handling, carrying and conversion, make it give way to more flexible paper money (currency). Nowadays, the monetary economy not only replaces the original barter economy, but also covers the gold standard economy. Monetary economy brings unprecedented economic freedom to mankind, but also brings many troubles and problems to mankind, such as unbalanced world trade, inconsistent values, inflation, currency depreciation, ups and downs of economic development and so on. One of the important macro factors that triggered the global financial crisis is the global trade imbalance.

The original intention of breaking away from the gold standard is to achieve economic freedom and stable development. Today, however, it is counterproductive. In today's diversified currency, the "gold content" of modern finance is getting less and less, but its connotation, function and risk are getting wider and wider, which has penetrated into every corner of society and everyone's life.

Nowadays, although the "gold content" of finance is getting less and less, its liquidity as a value is getting stronger and stronger. Finance has become the "blood" of the whole economy and penetrated into all aspects of society. Human activities will promote blood flow. Similarly, all economic activities will promote the flow of finance (capital and value). Without liquidity, finance will become a "pool of stagnant water" and its value cannot be converted; If the value can't be converted, the economy can't run; If the economy can't run, new value can't be generated; If it can't produce new value, human society can't develop. On the contrary, when the financial crisis develops to a certain extent, it will turn into an economic crisis; When the economic crisis develops to a certain extent, it will turn into a social crisis. This is an objective financial law independent of human consciousness.

China in the World by Hu Shi: "Let's think more. In recent years, in order to covet the interests of usury, the domestic bourgeoisie has desperately lent money to the China government, which not only delayed the fate of the evil government, but also destroyed the national finance. " Ding Ling's Shanghai in the Spring of 1930 (I): "Many pot-bellied businessmen and blood-eating ghosts who are exhausted because of hard work on abacus have more incentive to speculate under the financial turmoil." Chapter 7 of Sunny Day by Hao Ran: "The leadership of the bank helped him understand the importance of financial work in restoring the national economy and building socialism, and he listened. It is better to teach people to fish than to teach them to fish. The ancients said, "Give people fish for a meal, and you can enjoy a lifetime of happiness.". "

Financial core

The core of finance is the exchange of value across time and space. All transactions involving the distribution of value or income between different times and different spaces are financial transactions. Finance is to study why the value exchange across time and space appears, how it happens and how it develops.

For example, "money" is like this. It first appeared to store today's value, and then used it to buy other things tomorrow, the day after tomorrow or at any time in the future. However, money is also a cross-regional exchange of value. Today, you are selling things in Zhang Cun, and you walk to Licun with the money. You can use the money to buy what you want. Therefore, money solves the problem of storage and displacement of value across time and space, and the emergence of money is a revolutionary innovation for the development of trade and commercialization.

For example, the Shanxi "draft bank" developed in the Ming and Qing Dynasties mainly aims at the exchange of value in different places, so that the trade that should have been completed by transporting goods and silver across regions can be completed by sending a "piece of paper" issued by the Shanxi draft bank! Its advantage is that it greatly reduces the transaction cost of goods trade in different places, allows material production companies and commodity enterprises to focus on their own special goods, and leaves the challenge of payment in different places to the ticket number operators, reflecting their respective professional division of labor! After the transaction cost is so reduced, it is difficult for the cross-regional trade market not to develop rapidly!

In contrast, loan transaction is the purest cross-time value exchange. You borrowed 10,000 yuan from the bank or Zhang San today, and used it first, which is the so-called "overdraft future". Later, you can return the principal plus interest to the bank and Zhang San. For the bank and Zhang San, the opposite is true. They borrow money today and then transfer it to spend later.

In modern society, financial transactions have gone beyond these simple interpersonal exchange arrangements and become more complicated. For example, the financial transaction realized by stocks is also a cross-time value allocation. Today, you buy Sany Heavy Industry shares, entrust today's value to Sany Heavy Industry and the market, and get a return on investment in the future; Sany Heavy Industry will use the money you invested first, and then pay you back later. This is how you and Sany Heavy Industry exchange values across time. However, this cross-time value exchange is linked to future events, which means that if Sany Heavy Industry makes money in the future, it may give you dividends, but if it doesn't make money in the future, Sany Heavy Industry won't have to give you dividends, and you may lose all your money. Therefore, this financial transaction of stocks also involves the exchange of value across time and space. The "space" here refers to different profit and loss states and different situations in the future.

Of course, the general definition of finance may be too abstract, and these examples seem too simple. In fact, on the basis of these general definitions and specific financial varieties, human society has deduced and developed various large-scale financial markets, including various derivative financial markets based on general financial securities, which are nothing more than serving simple financial transactions similar to the above. The scope of financial transactions has expanded from the initial consanguinity system to towns, regions, the whole province, the whole country and the whole world.

Training objectives

Finance majors cultivate and master the basic principles of Marxist economics, basic knowledge and theory of finance, basic knowledge and skills of financial operation and financial market; Familiar with the prevailing international financial rules and practices and the operating mechanism of the WTO; Familiar with China's foreign-related financial management policies and regulations, and understand the development of contemporary financial markets; Application-oriented financial professionals who use modern scientific and technological means to operate modern financial business and have solid foreign language skills.

Edit this research branch

Its main research branches include:

Evolutionary finance.

financial market

Corporate finance (en: corporate finance)

Financial engineering

Financial economics

Investment (en:Investment investment)

Safety analysis and port safety management.

money and banking

international finance

Finance (en: public finance)

insurance

Mathematical finance

Financial econometrics

Evolution securities investment

Traditional securities investment

Intrinsic characteristics

Finance has five elements:

1. Financial object: currency (funds). The currency circulation regulated by the monetary system has the characteristics of prepayment, turnover and appreciation;

2. Financial model: represented by the credit model of lending. The trading objects in the financial market are generally written proof of credit relationship, contract documents of creditor's rights and debts, etc.

Including direct financing: no intermediary intervention; Indirect financing: financing realized through the intermediary function of intermediary structure.

3. Financial institutions: usually divided into banks and non-bank financial institutions;

4. Financial place: financial market, including capital market, money market, foreign exchange market, insurance market, derivative financial instrument market, etc.

5. System and control mechanism: supervise and control financial activities.

The relationship between various elements: financial activities generally take credit instruments as the carrier, and through the transaction of credit instruments, they play a role in the financial market to realize the transfer of the right to use monetary funds, and the financial system and regulation mechanism play a supervisory and regulatory role in it.

Financial crisis, financial crisis.

In 2008, a global financial crisis occurred in the United States. From the bankruptcy of Lehman Brothers on Wall Street, the economic situation in the United States took a sharp turn for the worse, until it spread to Germany, Britain and other European countries. Countries adopt macro-control measures to encourage investors and try to restore the economic situation. The reason of American economic crisis is that the principal-agent relationship is too long and distorted in the course of operation. Traders ignore whether the final value of the transaction can be recovered. The long-term agency relationship also makes moral hazard and irresponsibility rise, which eventually leads to the bankruptcy of banks with insufficient liquidity. And those investors who borrow money to buy a house are also facing the dilemma of no one buying, and investor confidence suddenly drops.

The book Smart Speculator puts forward a new understanding of financial crisis, which is generally caused by the bursting of a bubble in a certain field. In the face of the crisis, the government should guide the bubble field in an orderly manner and reduce the degree of the bubble, rather than trying to maintain the bubble. In order to reduce the impact of the bursting of the bubble on the overall economy, the government should vigorously support other non-bubble areas and promote the development of other areas, thus ensuring moderate economic growth.

talent strategies

As a developing economy, China's financial industry has a relatively short history and financial talents are still scarce. Over the past 20 years of reform and opening up, China has attached great importance to the cultivation of financial talents and team building, and implemented the strategy of financial talents to meet the needs of China's rapid economic and financial development.

First, vigorously develop financial education, initially establish a multi-level financial education system and accelerate the training of financial professionals.

Second, according to the new trend of world economic and financial development and China's actual needs, strengthen the training of financial practitioners, establish a training system and enrich the training content.

Third, actively introduce overseas financial talents, hire experienced talents who are familiar with the operation of the international financial market from returned overseas students and overseas financial institutions, and enrich them to financial supervision departments and financial enterprises.

Fourth, strengthen international cooperation in the financial field, invite foreign financial experts to give lectures or hold seminars in China, and send middle and senior financial management and technical personnel to study and work abroad.

Fifth, reform the financial human resources management system, and strive to create a good environment conducive to the discovery, cultivation and growth of talents. China government will continue to promote the strategy of financial talents, strengthen the development of financial talents resources and capacity building, so as to meet the requirements of international economic and financial development and China's modernization. [6]

financial investment

Financial investment covers a wide range. Let's take gold investment as an example. Gold investment has the following advantages:

1. The best tool for hedging inflation, which can preserve the value forever.

Increasing inflation has led to the tendency of many countries to tighten, which has brought huge losses to the personal property of investors whose main channel is deposits. On the contrary, gold itself, as a currency, has the value of preserving value. Gold has become the best hedging tool for people's property.

2. Bilateral transactions can make money by buying up and buying down.

With certain technical aspects and fundamentals, the profit probability is much higher than 50%. Whether it is a bull market or a bear market, buying up and buying down can make a profit and increase more investment opportunities and returns.

3.T+0 trading, 24-hour trading

Can be bought and sold, suitable for all kinds of people. Diversification of operation methods is relatively conducive to reducing risks and increasing profit opportunities.

4. Open and transparent, there is no banker in the market, and the transaction is more fair and just.

Compared with the stock and futures markets, the gold trading market is more stable and safe. In addition, the stock market is easily manipulated, but this will never happen in the gold and foreign exchange markets. The gold market (foreign exchange market) is a global investment market, and its daily trading volume is 600 times that of China stock market! The global investment targets are consistent and the prices are consistent. In reality, no consortium has the strength to manipulate the gold market, and gold investors have obtained great investment protection.

5. The variety is unique, the operation is simple, easy to learn and understand, and both bull and bear markets can make profits.

The stock market is a one-way buyer's market, so as long as it falls, it can only buy up and lose money; The gold (foreign exchange) market, whether it is a bull market or a bear market, can profit by buying up and killing down, increasing more investment opportunities and returns. Moreover, the variety of gold is single, and the operation is simple. It is time-consuming and laborious to select stocks from thousands of stocks every day.

6. Low transaction cost and no tax burden.

Compared with the relatively high stamp duty and commission of domestic stocks, international gold does not need any taxes and fees. Greatly reduce the transaction costs you bear. Really help you save money and make money.

7. Margin trading, leverage ratio, from small to large.

After an individual pays a certain margin, according to the leverage principle, the transaction amount can be enlarged several times. The volatility of the gold market is much lower than that of the stock and futures markets. Investors can customize the acceptable risk level by using leverage ratio. The role of leverage is to allow investors to participate in transactions with borrowed funds. Most brokers provide investors with a leverage ratio above L: 100, so that small investors can also participate, which is what we often say.

8. The gold foreign exchange market has broad prospects and will never be out of date.

Since China joined the WTO, China's financial market is accelerating globalization and gradual liberalization. Foreign banks will be able to operate RMB personal business, and China Finance will directly face the impact of international investors. How to avoid the risk of gold will become the most concerned issue for the government and investors. Before RMB is fully circulated, we should be prepared to meet the challenge. Gold trading is still a young industry in China, so we should learn more about gold and lay a good foundation for maintaining and increasing the value of our assets. With the development of global financial integration, China will be more and more integrated into the global economy, and the full opening of the capital market is just around the corner. Spot gold will surely become an indispensable investment tool for the people. We believe that today's prosperous securities market is the future of spot gold market! [7-8]

financial stability

The European Central Bank's definition of financial stability is representative to some extent. It is pointed out that financial stability refers to a state in which financial institutions, financial markets and market infrastructure operate well and resist various shocks without reducing the efficiency of transforming savings into investment.

American economist mishkin (1998) believes that financial stability comes from a financial system built on a solid foundation, which can effectively provide opportunities for the transformation from savings to investment without causing great turmoil.

Crockett, former general manager of the Bank for International Settlements, believes that financial stability can include:

(1) The key financial institutions in the financial system remain stable because the public has full confidence in these institutions to perform their contractual obligations without intervention or external support;

(2) Key markets remain stable, and economic entities can trade at prices that reflect the basic factors of the market. Under the condition that the fundamentals have not changed, prices will not fluctuate greatly in the short term.

Most viewpoints regard financial stability as the stability of financial institutions, mainly the stability of banks, or it can be understood that most financial institutions in the financial system operate steadily without affecting market confidence. Financial instability is often manifested in the fragility of financial intermediaries or abnormal fluctuations in asset prices, which is also the main basis for monitoring financial stability. Financial stability is a dynamic concept with rich connotation, which reflects a state of financial operation, the requirement of continuous optimization of resource allocation and serves the fundamental goal of financial development.