Academic & Professional Qualification
- PhD., MS., Massachusetts Institute of Technology
- BS., New York University
Dr. Fangzhou Lu joined The University of Hong Kong (HKU) as an assistant professor at the HKU Business School in 2020. He received his Bachelor of Science from New York University, Stern School of Business in 2014, and Ph.D. from Massachusetts Institute of Technology (MIT) in 2020.
His research interests are Fintech, Cryptocurrency, Behavioral Finance, Entrepreneurial Finance, Emerging Markets, and Household Finance. His research is forthcoming in academic journals such as the Journal of Financial Economics. His recent research focus on economic growth following the COVID-19.
- Behavioral Finance
- International Finance
- “The Real Value of China’s Stock Market”, with Jennifer N. Carpenter and Robert F. Whitelaw, 2021, Journal of Financial Economics, 139(3), 679-696.
What capital allocation role can China’s stock market play? Counter to perception, stock prices in China have become as informative about future profits as they are in the US. This rise in stock price informativeness has coincided with an increase in investment efficiency among privately owned firms, suggesting the market is aggregating information and providing useful signals to managers. However, price informativeness and investment efficiency for state-owned enterprises fell below that of privately owned firms after the postcrisis stimulus, perhaps reflecting unpredictable subsidies and state-directed investment policy. Finally, evidence from realized returns suggests Chinese firms face a higher cost of equity capital than US firms.