The research “virtual economy and virtual finance ” (70573042) concluded on December 2008 which was supported by National Natural Science Foundation of China. It was chaired by Professor Bai Qinxian from LiaoningUniversity and rated as good on July 2010.It can be said that this project is timely and advanced. We proposed this project based on the different essential features between modern and traditional finance and a clear understanding of its huge impact for the world economy and finance. We also consider the conditions of increasing economic globalization, increasing economic and financial technology and financial globalization. Another aspect is that emergency response measures should be taken to control the risk of the divorce of virtual economy and real economy. This challenging research topic makes the basic theory of financial innovation as a platform and is closely related to global economic and financial risks and crises that may occur at any time.

This project has fruitful results:

(1) 5 Monographs;

(2)22 papers published in the core journals, 19 papers in CSSCI source journals;

(3) 4 present special studies for present special study;

(4) 4 provincial and ministerial awards, including 3 provincial-level award and a second prize of Provincial People's Government Social Outstanding Achievement Award.

This project presents great breakthroughs at some aspects like virtual economy and fundamental research of finance, and it also shows significant innovation:

(1) The new concept of financial virtual is first proposed as a theory. This study and related articles and speeches are received by Mr. Cheng Siwei many times who has been committed to the study of virtual economy. Mr. Cheng have gave praise to this study several times “it is likely to be a breakthrough in the study of virtual economies”, and the relevant monograph has won the first prize of provincial and ministerial level award.

(2) The study has a clear innovation of Basic Theory of Finance because of the research of the essential features of modern finance, the positive and negative features of financial derivatives, especially the new proposition of "negative function". There is a significant breakthrough on the functional problems of western mainstream economics which only include positive features. As a result, it provided advanced theoretical preparation for the global financial crisis and maintained enough expectations and vigilance for the occurrence of the crisis. The relevant monograph "the evolution of virtual financial and the research of its positive and negative features" was rated as Outstanding Doctoral papers at school and provincial level, and won three provincial-level awards because of this contribution.