Fudan was the first University in China to set up the finance specialty, starting to offer the undergraduate program of international finance as early as 1983. In 1990 it created a master program of finance and in 1992 Department of International Finance was formally set up. In 1993 and 1994, with the approval from Chinese Ministry of Education, two additional undergraduate programs of investment and insurance were added to the department. Having obtained approval for the PhD program of international finance in 1993, the department began to recruit postdoctoral finance researchers in 1994. After a national adjustment of specialties in 1988, the three undergraduate programs of international finance, investment and insurance were integrated into one program of finance. Currently the department has approximately 400 undergraduates, 50 MA students and 30 PhD candidates. It offers one undergraduate program of Finance and the areas of specialization for graduate studies include International Finance, Money and Banking, International Investment, Public Finance and Taxation, and International Insurance. Department of International Finance is among the few institutions in China which are allowed to provide undergraduate, master, doctoral and postdoctoral programs of finance simultaneously. Prof. Liu Hongzhong is chairman of the department. Currently the faculty includes 4 professors, all of whom are PhD directors, and 8 associate professors. Among them, 10 received their PhD from British or Japanese universities. Besides teaching, the department has assumed a great number of research projects funded by the Chinese Social Sciences Fund, Chinese Ministry of Education, etc. A series of influential publications have been produced. In recent years, the outside environment has presented the department with great opportunities. Fudan University is located in Shanghai, the most dynamic city of China in many respects including finance. New finance issues have been emerging here with the establishment of various financial institutions and markets in Shanghai, which has provided the department with more room to develop. This desirable outside environment has led to the department's orientation towards the latest development of finance and students' better ability to analyze and solve problems. Fudan University has specified the Finance specialty as one of the few priority disciplines of the University and now it is also a national key specialty. Both the faculty and students are positively taking part in activities addressing practical economic and financial issues, contributing greatly to the development of Shanghai towards an international economic, trade and financial center. Fudan is the first in the world to define international finance as a discipline which studies from the perspective of money and banking the simultaneous achievement of internal and external equilibriums in an open economy. Fudan University Department of International Finance is characterized by the following research fields: 1. Macro finance theories and policy in an open economy. Transcending the traditional practices of confining finance studies to domestic situations only, the faculty have introduced into their research time series analysis of micro foundation, emphasizing studies of theories on financial markets stability, foreign exchange and interest rates, and macro financial management in an open economy. 2. Fundamental principles, policies, and practices of international finance and its latest developments, including international monetary system and relationship among currencies; structure and functions of international financial markets and new developments in financing techniques; foreign exchange rates and principles and practices of foreign exchange transactions; role of international finance organizations and international banking activities; role of international reserves and optimal size of China's international reserves. 3. Money and banking. In this field, the faculty mainly research rules of currency circulation; determination and adjustment of money supply; organization and management of money markets; supervision of banking operations; national monetary policy making and its transmission mechanism. 4. Fundamental theories on financial markets and the empirical analyses. Using market microstructure theory and econometrics, the faculty analyze investor behavior and transaction regulation in Chinese financial markets, especially in capital markets. In the years to come, the faculty’s efforts will be mainly devoted to achieving breakthroughs in the following respects: 1. International finance: Based on time series analysis of micro foundation, research will be conducted on real exchange rate of RMB, micro foundation of how RMB rate is determined, conditions and policy set-up needed for full convertibility of RMB under capital account.　 2. Financial markets: Research will be centering around China's financial market microstructure, including microstructure analysis for China's equity investment funds (e.g., evaluation of funds' performance, price discounts of closed funds, and portfolio management of funds), microstructure analysis of transaction regulation in China's securities market (e.g., the institution of stopping trading a particular stock during a day when the price rises to the cap, and information disclosure), microstructure analysis of strategic traders' and small investors' behavior (e.g., game equilibrium among strategic traders and that between strategic traders and small investors), microstructure analysis of foreign exchange market and money market. 3. Financial engineering, investment and corporate finance.