The China Economics Prize Committee of the National Economics Foundation decides to award the China Economics Prize 2018 to Wang Jiang and Xiong Wei for their outstanding contributions in the field of finance.

Wang Jiang’s important contribution to the field of Economics is the development of a new asset pricing framework distinguished by incorporating market frictions into neoclassical theory, and which comprises three components. The first component is the development of asset pricing models that capture market participants’ important trading needs, providing a new theory to analyze the resulting equilibrium outcomes of such a model such as trading volume and price dynamics. The second part is studying market liquidity issues from the perspective of market frictions, thus providing a theoretical foundation for market liquidity. The third part is identifying potential inefficiencies caused by market frictions and exploring potential policy remedies ranging from regulatory actions to market interventions.

Xiong Wei’s important contribution to the field of economics is his focus on studying market frictions and behavioral biases that lead to imperfections and inefficiencies in the global capital markets. His theory explains the possible consequences of highly leveraged financial intermediaries, including causing liquidity issues and contagion effects in the market. In behavioral finance, he has developed a series of economic theories with his coauthors to analyze fundamental economic mechanisms that lead to asset bubbles and the substantial effects of asset bubbles. He has also made important contributions to a wide range of other topics including asset pricing with heterogeneous beliefs and belief distortions in the recent financial crisis.

Prof. Wang Jiang, received his B.S. degree in physics from Nanjing University, and his PhD degree in science and PhD degree in economics (finance) from the University of Pennsylvania. He is currently Dean of the Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, and Professor of Finance in MIT.

Prof. Xiong Wei, received his B.S. degree in physics from University of Science and Technology of China, and his PhD degree in finance from Duke University. He is currently Academic Dean of School of Management and Economics, Chinese University of Hong Kong, Shenzhen, and also Professor in Finance and Professor of Economics in the Department of Economics and Bendheim Center for Finance, Princeton University.

                                 July 12th, 2018

The China Economics Prize is founded and organized by the National Economics Foundation. Prize amount: 2 million Yuan and one gold medal. Prize-winners share the Prize. The purpose of the Prize is to encourage theoretical innovation in the field of economics, to develop economic science, to encourage and promote Chinese economists to contribute to the prosperity of human economic science by awarding Chinese scholars who have made outstanding contributions to economics.                                                  

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