Zhiwu Chen
Prof. Zhiwu CHEN
Finance
Chair of Finance
Director, Asia Global Institute
Victor and William Fung Professor in Economics
HKU Council Member

3917 1271 / 2219 4967

KK 1112 / MB 335

Academic & Professional Qualification

  • Ph.D., M.A., M.Phil., Yale University
  • M.S., Changsha Institute of Technology
  • B.S., Central-South University of Technology

Biography

Professor Zhiwu Chen is Director of the Asia Global Institute (AGI), Chair Professor of Finance and Victor and William Fung Professor in Economics at the University of Hong Kong (HKU). Professor Chen is a former Professor of Finance at Yale University (1999-2017). His research covers finance theory, the sociology of finance, economic history, quantitative history, emerging markets, as well as China’s economy and capital markets. He was also a Special-Term Visiting Professor at Peking University and Tsinghua University.

Professor Chen started his career by publishing research papers in top economics and finance journals on topics related to financial markets and theories of asset pricing. Around 2001, he began to expand research beyond mature markets by investigating market development and institution-building issues in the context of China’s transition process and other emerging markets. He successfully led efforts to construct historical financial and social databases from China’s historical archives and has written on economic/social history topics. In 2013, he started the annual Summer School for Quantitative History cum International Symposium on Quantitative History at Tsinghua University and continues to organize them at Peking University, with the goal of promoting quantitative historical research in China and beyond.

Professor Chen has been a member of HKU Council since November 2018. He is on the board of directors of Noah Holdings and Bairong Inc. He also served on the International Advisory Board of the China Securities Regulatory Commission (CSRC) (2012-19), the Expert Advisory Board for the formation of the China Investment Corporation (2007), and on the board of directors as an independent non-executive director at IDG Energy Investment (2016-18) and Bank of Communications (2010-18); as an independent director at PetroChina (2011-17) and Lord Abbett China (2007-15). He was on the Board of Trustees of the Yale China Association, the 12th and 13th Five-Year Plan Advisory Commission to the Beijing Municipal Government, and the Chief Academic Advisor to two 10-episode CCTV documentary series, “Wall Street” and “Money”. He was a co-founder and partner of Zebra Capital Management from 2001 to 2011. In Burson-Marsteller’s 2012 “G20 Influencers” report, Professor Chen was listed as one of the top ten political influencers in China.

Professor Chen is a frequent contributor to media publications in China on topics of economic policy, market development, institutional reform and historical research. His work has been widely published and regularly featured in major newspapers and magazines in the United States, Hong Kong, China and many other countries. His Chinese books include: How Is Wealth Created? (2005), Media, Law and Markets (2005), Why are the Chinese Industrious and Yet Not Rich (2008), Irrational Overconfidence (2008), The Logic of Finance (2009), 24 Wealth Lectures (2009), Assessing China’s Economic Growth of the Past 30 Years (2010), On the China Model (2010), The Logic of Finance 2: Path to Individual Freedom (2015), Introduction to Finance (2018) and Introduction to Investment (2019). He is currently working on a book manuscript, Logic of Civilization, that explores a number of human innovations, including mythology or magic and supernatural beliefs, technologies, social structures, cultural norms, religions, financial markets, and the welfare state. He has received research awards including the Graham and Dodd Award (2013), the Pacesetter Research Award (1999), the Merton Miller Prize (1994), and the Chicago Board Options Exchange Competitive Research Award (1994). He has also received a number of book awards in China and Hong Kong, among which are 23 awards for The Logic of Finance in China and Hong Kong, and the best book award from hexun.com for Why are the Chinese Industrious and Yet Not Rich.

Professor Chen received his PhD in financial economics from Yale University in 1990; MS in systems engineering from Changsha Institute of Technology in 1986; and BS in computer science from Central-South University in 1983. He was Assistant Professor of Finance at University of Wisconsin – Madison (1990-95); Associate Professor of Finance at Ohio State University (1995-99); and Professor of Finance at Yale University. He has been AGI Director and the Victor and William Fung Professor in Economics at HKU since July 2016. In July 2019, Professor Chen was conferred the title of Chair Professor of Finance in recognition of his contribution to finance.

Research Interest

  • Finance Theory
  • Sociology of Finance
  • Economic History
  • Emerging Markets
  • China’s Economy and Capital Markets

Selected Publications

  • Quantitative History Research, Vol 5《量化历史研究 (第五辑) 》, co-edited with Debin Ma and Long Denggao, Science Publishers, China. 2019.
  • “Social Norms and Household Savings Rates in China,” (with Yvonne Chen and Shijun He) Review of Finance, 2018, 1-31
  • “A Study of Wife Prices in Qing China: How women were used as Insurance Assets,” (with Shijun He, Zhan Lin and Kaixiang Peng) China Economic Quarterly, 1, 2018, 253-280.
  • “Usury, Market Power and Poverty Traps: A Study of Rural Credit in 1930s’ China,” (with Kaixiang Peng and Weipeng Yuan) Frontiers of Economics in China, 13(3), 2018, 369-396.
  • Introduction to Investment 《陳志武金融投資課. Beijing: CITIC Press, 2019.
  • Introduction to Finance《陳志武金融通識課》. Changsha: Hunan Literature and Art Publishing House, 2018.
  • Quantitative History Research, Vols 3 & 4《量化歷史研究 (第三,四輯)》, co-edited with Debin Ma and Long Denggao, Science Publishers, China. 2018.
  •  “Social-economic change and its impact on violence: Homicide history of Qing China,” (with Kaixiang Peng and Lijun Zhu) Explorations in Economic History, 63, 2017, 8-25.
  • The Future of Financial Reform中國金融改革, 未來會怎樣 ? (with Yiping Huang and Shusong Ba). Hangzhou: Zhejiang University Press, 2017.
  • “A Preliminary Study of Chinese Interest Rates from the Early Qing to the Twentieth Century Based on an Examination of the Historical Database of Chinese Interest Rates (1660 – 2000),” (with Kaixiang Peng, and Weipeng Yuan) Qing History Journal 清史研究, 104(4), 2016, 36-52.
  • “Research on Debt Homicide Cases in mid Qianlong and mid-late Daoguang Reigns,” (with Zhan Lin and Kaixiang Peng) Qing History Journal 清史研究, 102(2), 2016, 75-86.
  • “On the Past and Future Prospects of Quantitative History Research,” Qing History Journal 清史研究, 0(4), 2016, 1-16.
  • “The Asset Management Industry in China: Its Past Performance and Future Prospects,” (with Peng Xiong and Zhuo Huang) Journal of Portfolio Management, 41(5), 2015, 9-30.
  • The Logic of Finance 2: Path to Individual Freedom金融的邏輯 2:通往自由之路. Xi’an: Northwestern University Press (China), 2015.
  • Quantitative History Research, Vol. 2《量化歷史研究 (第二輯 )》, co-edited with Debin Ma and Long Denggao, Zhejiang University Press, 2015.
  • “Violent Conflicts in Private Lending: A Research Based on Qing Dynasty’s Homicide Reports,” (with Zhan Lin and Kaixiang Peng) Economic Research Journal經濟研究 (9), 2014, 162-175.
  • “Discounts and Investment Performance of Chinese PIPEs,” (with Jinhui Luo) Portfolio Management, 41(2), 2014, 41-56.
  • Quantitative History Research, Vol. 1《量化歷史研究 (第一輯 )》, co-edited with Debin Ma and Long Denggao, Zhejiang University Press, 2014.
  • “Financial Strategies for Nation Building,” In Joseph Fan & Randall Morck (Eds.), Capitalizing China. Chicago and London: University of Chicago Press, 2013, pp. 313-333.
  • “Liquidity as an investment style,” (with Roger Ibbotson, Daniel Kim and Wendy Hu) Financial Analysts Journal, 69(3), 2013, 30-44.
  • “Option Pricing and Hedging Performance Under Stochastic Volatility and Stochastic Interest Rates,” (with Gurdip Bakshi and Charles Cao) In C. Lee & J. Lee (Eds.), Handbook of Quantitative Finance and Risk Management.  Boston, MA: Springer, 2010, pp. 547-574.
  • “A Valuation Study of Stock Market Seasonality and the Size Effect,” (with Jan Jindra) Journal of Portfolio Management, 36(3), 2010, 78-92.
  • The Logic of Finance金融的邏輯 : 當代中國創富之道. Hong Kong: Commercial Press, 2010.
  • The Logic of Finance金融的邏輯. Beijing: Modern Press, 2009. Korean version published in 2010.
  • “The Mechanisms of Rural Credit Market in Modern China –  A Research Based on Raw Documents,” (with Kaixiang Peng and Weipeng Yuan) Economic Research Journal 经济研究 (5), 2008, 147-159.
  • Irrational Overconfidence?非理性亢奮》. Beijing: CITIC Press, 2008.
  • Why Are Chinese Hard-Working and yet Poor?為什麼中國人勤勞而不富有 . Beijing: CITIC Press, 2008.
  • “Development Prospects of Chinese Industries,” In Subhash C. Jain (Ed.), Emerging economies and the transformation of international business: Brazil, Russia, India and China (BRICs) (New horizons in international business). Cheltenham: Edward Elgar, 2006, pp. 155-182.
  • “China’s Stock Market in Historical Perspective,” The PB Newsletter, Issue No. 5, July 2006, 29-40.
  • “Informational Content of Option Volume Prior to Takeovers,” (with Charles Cao and John Griffin) The Journal of Business, 78(3), 2005, 1073-1109.
  • “Stock valuation in dynamic economies,” (with Gurdip Bakshi) Journal of Financial Markets, 8(2), 2005, 111-151.
  • “A free press could help China’s economy,” Financial Times, September 20, 2005.
  • “Pricing and hedging long-term options,” (with Gurdip Bakshi and Charles Cao) Journal of Econometrics, 94(1), 2000, 277-318.
  • “Do Call Prices and the Underlying Stock Always Move in the Same Direction?” (with Gurdip Bakshi and Charles Cao) The Review of Financial Studies, 13(3), 2000, 549-584.
  • “Empirical Performance of Alternative Option Pricing Models,” (with Gurdip Bakshi and Charles Cao) Journal of Finance, 52(5), 1997, 2003-2049.
  • “Equilibrium Valuation of Foreign Exchange Claims,” (with Gurdip Bakshi) Journal of Finance, 52(2), 1997, 799-826.
  • “An alternative valuation model for contingent claims,” (with Gurdip Bakshi) Journal of Financial Economics, 44(1), 1997, 123-165.
  • “The spirit of capitalism and stock-market prices,” (with Gurdip Bakshi) The American Economic Review, 86(1), 1996, 133-157.
  • “Portfolio Performance Measurement: Theory and Applications,” (with Peter Knez) The Review of Financial Studies, 9(2), 1996, 511-555.

Awards and Honors

  • Received numerous research rewards including the Top Graham and Dodd Award for the Best Paper of 2013 in Financial Analyst Journal, the Pacesetter Research Award (1999), the Merton Miller Prize (1994), and the Chicago Board Options Exchange Competitive Research Award (1994).
  • Listed with one of the top 50 “Most Cited Articles of All Time” of the Journal of Finance (ranked #42, Empirical Performance Of Alternative Option Pricing Models, with Gurdip Bakshi and Charles Cao, published in December 1997).
  • Listed in 2012 “G20 Influencers” report by Burson-Marsteller as one of the top ten political influencers in China.
  • Named one of the “10 Public Intellectuals” who influenced China in 2010, by Times Weekly, a national newspaper based in Guangzhou, China.
  • Received 23 “Best Books of the Year” awards in various categories and for 2009 in China for his book, The Logic of Finance 《金融的邏輯》.
  • Received the First Prize, Hexun Best Books of 2008, for his book, Why Are Chinese Hard-Working and yet Poor?《中國人為什麽勤勞而不富有》.
  • Named one of the 20 People of the Year in defending “Public Interest”, 2006, by Nang Feng Cuan magazine in China.
  • Professor Chen’s Chinese blog was named one of the Top 10 Blogs in China in the topic area of “Public Interest”, 2006.

Recent Publications

80後富豪也退休 內捲化失創新動力

為何中國科企更容易走入惡性競爭?港大亞洲環球研究所所長、金融學講座教授陳志武接受本刊專訪時,便拆解中美分別。首先,美國勞工成本高,科企不希望浪費資源模仿別人產品。其次,美國擁有完善保護知識產權、專利的法律,加上法院享有獨立地位,就算總統出手也難以干預。相反,如果中國政府希望發展高科技,法官為免違反中央鼓勵政策,通常不會受理相關案件。「在這個環境下,有時便出現浪費、重複的低階惡性競爭。」

Broken Bonds

A whistleblower from one of China’s most powerful banks says its shady dealings highlight how Hong Kong’s financial system is increasingly at the mercy of Beijing.

HSBC Asia Pivot Stokes Tension Between Hong Kong, London Bankers

HSBC Holdings Plc is shipping senior executives from its London headquarters to Hong Kong to seal a pivot by Europe’s largest lender to Asia. The moves are also stoking some discontent. Already smarting from a cut to the bonus pool after losses in Europe, some senior executives in Greater China worry their push into the world’s second-largest economy could be slowed by added bureaucracy and blurred reporting lines, according to people familiar with the discussions who asked to remain anonymous discussing a sensitive issue.

反壟斷鐵拳出擊 科網巨頭國進民退

山雨欲來風滿樓。繼螞蟻集團世紀IPO臨時叫停,中國互聯網民企再遇「黑天鵝」!話說去年「雙十一」前夕,國家市場監管局發布《關於平台經濟領域的反壟斷指南(徵求意見稿)》,投資界憂慮新監管對相關企業的影響,兼且遇上新舊經濟股輪動,一眾平台經濟股立即插水。

What the incoming Biden Administration could mean US-China relations

Zhiwu Chen, director of the Asia Global Institute, shares his views on what the incoming Biden administration could mean for US-China relations and the trend of secondary listings of Chinese companies in Hong Kong at Bloomberg Markets: China Open Full Show.

How China Lost Patience With Jack Ma, Its Loudest Billionaire

“It is not new that the party regulates everything, including private businesses and especially private financial businesses, as this had been … explicitly stated in China’s constitution,” says Zhiwu Chen, a finance professor and director of the Asia Global Institute at the University of Hong Kong. “But many private businessmen did not take this seriously. The recent Ant episode was a wake-up call.”

China pulls back from the world: rethinking Xi’s ‘project of the century’

It has not taken long for the wheels to come off the Belt and Road Initiative. As recently as May 2017, China’s leader Xi Jinping stood in Beijing before a hall of nearly 30 heads of state and delegates from over 130 countries and proclaimed “a project of the century”.

为什么疫情之后富人更有钱,穷人更穷了?陈志武最新解读

12月5日—7日,凤凰网财经峰会在北京举行,据悉本次峰会以“破局与新生”为主题,梁振英、尚福林、殷勇、李扬、宋志平等多位政商学界嘉宾出席。 香港大学亚洲环球研究所所长陈志武在峰会上表示,在新冠病毒危机发生以后,富人的财富今年增长很多,而穷人今年财富没有任何增长。

黃金、黃金存摺、黃金期貨,入門者買那個好?

最近幾年,香港的銀行黃金儲藏箱嚴重短缺。無論你跑到哪家銀行說想租保險箱保存金條,銀行都會告訴你保險箱早就被租完了。為什麼會這樣呢?大家知道,投資實物黃金,讓人頭痛的是要找個安全的地方把它藏起來,不能磨損,也不能被人偷。那要放在哪裡呢?如果量少,可以放在家裡鎖起來;如果量大,到銀行租保險箱是方法之一。但是,如果銀行保險箱也沒有了,那該怎麼辦呢?

「窮政府」還要減稅?破解財政赤字的邏輯

美國這些年每年都有財政赤字,政府入不敷出,而且到2016年底,聯邦政府負債餘額為22.8兆美元,是美國GDP的一倍多。可是,從雷根、老布希、小布希到川普,只要是共和黨的人,從總統選舉期到實際成為總統後,都聲稱要減稅,而且他們當上總統後真的經常減稅,而不是增稅以減少政府負債。這到底是怎麼回事?政府已經很窮了,居然還要減稅,這到底是因為他們不負責任,還是背後有站得住腳的邏輯支撐?

投資期貨不可怕 槓桿才可怕

期貨圈令人悲傷的新聞不少,而股票投資圈似乎較少見這樣的新聞,這難道是因為期貨的風險比股票更大嗎?背後的原因到底是什麼呢?

全球疫情此起彼伏,中国经济将何去何从?

近期,欧洲及美国的第二波新冠肺炎的疫情来势凶猛。有经济学家预计,欧元区的经济将在今年四季度萎缩2.3%,复苏或因第二波疫情而夭折,而后陷入长期的低迷;更有金融机构分析称,过早重新开放企业的复工复产是一场大赌博,在没有疫苗的情况之下,美国各州正在冒着新一波疫情的风险,有可能使经济进一步地陷入尾旋式下跌。

Jack Ma setback reminds investors that Beijing is still boss

When Jack Ma last week chose to speak truth to power about the failings of China’s financial system, he was aiming very high — perhaps too high. The founder of ecommerce business Alibaba, already China’s wealthiest man, was set to become substantially richer when his online finance spin-off Ant Group debuted on the Hong Kong and Shanghai stock exchanges on Thursday. At $37bn, it was going to be the world’s largest ever initial public offering.

陳志武:新冠只會加劇貧富分化、仇外及動蕩

Professor Zhiwu Chen, Director of Asia Global Institute & Victor and William Fung Professor in Economics, was interviewed by Financial Times about the long term impact of COVID-19 pandemic.