A finance professor in West Virginia Universitys College of Business and Economics is participating in a three-month research project in Shanghai that could change the financial markets in China.

Victor Chow, associate director of the colleges Center for Chinese Business, is taking part in a visiting financial economist program at the Shanghai Stock Exchange. This program helps the exchange improve service and regulation of the capital markets in China.

Called Exchange Traded Fund experts, Chow and other world-class economists are promoting efficiency, accuracy and competitiveness of the market. They are helping to stabilize the market in China, whose steamrolling economy showed a 14.6 percent growth in fiscal revenues during the first half of 2005 to 1.639 trillion yuan (about $202.3 billion).

China has been struggling to find a way to introduce government-owned shares of state-owned companies into the financial markets of China without causing significant disruption for many years,said William Riley, director of the Center for Chinese Business.

For a WVU professor to be invited to lead a team of researchers to recommend solutions to this issue is quite remarkable,Riley added.Its not often that a professor can make such a significant contribution to solving a problem for an emerging economy with 1.3 billion people.

Chow and his colleagues are trying to make domestic and foreign investments less risky. The idea is to protect the interests of investors and provide a smooth transition as shares of state-owned companies are traded in the market.

The visiting financial economist program was started in 2002 and has become well-known among U.S. professors interested in Chinese capital markets. Visiting economists are chosen based on expertise in their field and experience and knowledge of Chinese capital markets. The stock exchange each year selects approximately three financial experts with different specialties.

At WVU , Chow teaches business finance, security analysis and portfolio management, bank management, and executive financial education.

This year, the Exchange Traded Fund project is very important for our exchange,said Vincent Wang, senior research fellow at the Shanghai Stock Exchange.We are highly honored to have Professor Chow, who not only understands mature capital markets but also is highly proficient in the operation of capital markets in China, as our expert.