"There are many universities and colleges in China. However, the country is still in lack of world-class education institutes," said Zhu Qingshi, president of the Hefei-based University of Science and Technology of China.
"What we are building in Shanghai is exactly such a school to fill the gap."
Located in the city's Nanhui District, the university's newly launched Shanghai Institute for Advanced Studies is the country's first privately funded academic research institute.
The new campus covers an area of about 33.3 hectares and is equipped with top-notch education facilities.
Affiliated to the public USTC, the school's funding mainly comes from private donations.
The first phase of investment of about 500 million yuan (US$60.24 million) was provided by Zenisun, a local real estate developer.
Zhu added that another 200 million yuan will be put into the school's daily operation.
"It is only when they are free of any financial or living pressure that scholars can really climb to the peak of their respective research fields," he said.
"We will provide them with an excellent research environment and working conditions so that they can concentrate on their research to make original contributions and breakthroughs."
Professors can join the institute either as permanent faculty or short-term visiting scholars, especially those in the fields of pure mathematics, physics and financial engineering, to carry on their own research.
Besides good working conditions, the school will also offer good salaries and benefits, such as houses, cars and children's education.
The institute has set up its Education Development Foundation to ensure adequate funding.
The foundation is sponsored by companies, local government, research projects and individuals.
"We are not worried about a shortage of funding," Zhu said. "As long as the school boasts the best professors and projects, I believe that more and more companies, as well as local banks and stock exchanges will come to support us financially as they need our analysis and suggestions."
Two academic research centers have already been set up in the school.
Modeled on the Institute of Advanced Study at Princeton, the Center of Mathematics and Theoretical Physics aims to build itself into a first-rate research center in Asia within three to five years.
It also vows to become a reputable world-class research center in the near future.
"We hope that the center will attract more and more renowned scientists from home and abroad and encourage them to bring their innovations to build a reputation for the school," Zhu said.
Established last month, the Center for Financial Engineering and Asset Management is one of the first of its kind in the country.
"By joining the WTO, China urgently needs to develop its financial market, which calls for both more research and education in finance, and financial engineering in particular," he said.
"Shanghai is an ideal place for us to launch the courses as it plans to become the financial center of China and Asia as well. I believe that such courses will have a bright future in the city."
He added that it will turn out to be a cradle for quality professionals that meet the challenges of today's global economy as well as an important institution advising the Chinese government in formulating financial policies.