Princeton-BCF China Initiative

The Princeton-BCF China initiative aims to develop an interface for facilitating collaborative research and academic exchanges between faculty and students in Princeton and China. This initiative serves the quickly growing demands from academic and policy communities across the world to systematically study the Chinese economy and its financial system and the risks and opportunities it presents to the global economy. Despite having the 2nd largest economy in the world, China has a very different institutional structure from most western countries. Princeton economists can substantially benefit from interacting with local scholars and researchers in China, who tend to have better institutional knowledge about the Chinese economy and better access to Chinese economic data. At the same time, local academics can also learn from Princeton economists, who have better understanding of fundamental economics concepts and more rigorous training in modern economic analysis methods. This initiative tries to bridge these gaps and provide an intellectual interface between researchers in China and top academics at Princeton. It also aims to provide a platform for both graduate and undergraduate students in Princeton to visit China and study China.

The Princeton-BCF China initiative is coordinated by Wei Xiong, Trumbull-Adams Professor of Finance and Professor of Economics, together with the director of BCF.

The Princeton-BCF China initiative currently has the following elements:

• Academic visitors
  • Wenzhe Li from People’s Bank of China, 2016-2017

• Post-doc program
  • Ting Chen, 2016-2018

• Workshops and forums
  • Workshop on Stock Trading Systems: China and US Comparison
  • Escalating Risks: China’s Economy, Society and Financial System

• Teaching
  • ECO 494/FIN 594: Chinese Financial and Monetary Systems, offered by Yaxin Duan and Wei Xiong in Fall 2015 and Fall 2016

• Research papers
  • Hanming Fang, Quanlin Gu, Wei Xiong, and Li-An Zhou (2015), Demystifying the Chinese Housing Boom, NBER Macroeconomics Annual, edited by Martin Eichenbaum and Jonathan Parker, 105-166
  • Chunxin Jia, Yaping Wang, and Wei Xiong (2016), Market Segmentation and Differential Reactions of Local and Foreign Investors to Analyst Recommendations, Review of Financial Studies, forthcoming
  • Markus Brunnermeier, Michael Sockin, and Wei Xiong (2017), China’s Gradualistic Economic Approach and Financial Markets, American Economic Review Papers & Proceedings, forthcoming
  • Markus Brunnermeier, Michael Sockin, and Wei Xiong (2017), China’s Model of Managing the Financial System [Online Appendix]
  • Ziying Fan, Wei Xiong, and Li-An Zhou (2016), Information Distortion in Hierarchical Organizations: A Study of China’s Great Famine
  • Ting Chen, Zhenyu Gao, Jibao He, Wenxi Jiang, and Wei Xiong (2017), Daily Price Limits and Destructive Market Behavior
  • Zhang, Yu (2016), Liquidity Constraint, Transition Dynamics, and the Chinese Housing Return Premium