On July 12th, 2018, Professor Jiang Wang, Chair of Academic Council of Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University and Mizuho Financial Group Professor of the Sloan School of Management, MIT, was awarded the China Economics Prize 2018 for his exceptional contributions in the field of finance.
Established in 2016, the China Economics Prize is founded and led by the National Economics Foundation. The purpose of the award is to advance theoretical innovation, to boost economic science, and 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. The recipients of this year’s prize are Professor Jiang Wang and Professor Wei Xiong, the Academic Dean of the School of Management and Economics of the Chinese University of Hong Kong, Shenzhen, Professor of Finance and Professor of Economics at Princeton University.
According to the Prize Committee, Professor Jiang Wang‘s important contribution is the development of a new asset pricing framework distinguished by incorporating market frictions into neoclassical theory, and the framework 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.
Professor Wang’s research is mainly in the area of asset pricing, investment and risk management, market liquidity and stability, international finance, financial innovation and financial engineering, and Chinese capital market. He has published extensively in leading academic journals. He is the recipient of the Smith Breeden Prize, the FAME Research Prize, the Leo Melamed Prize, the Batterymarch Fellowship, among other scholarly awards. He has served on the editorial boards of the Journal of Financial Markets, Operations Research, Quantitative Finance, Review of the Financial Studies and other professional journals.
Professor Wang has served as a member of the Financial Advisory Roundtable of the Federal Reserve Bank of New York, the International Advisory Council of China Securities Regulatory Commission, the Economic Advisory Board of NASDAQ Stock Market, Inc., the Academic Advisory Board of FTSE and the Academic Advisory Board of Moody’s. He has also served as a Director of the American Finance Association and the Western Finance Association, the Distinguished Visiting Professor of the London Business School and the Singapore Management University, and the Director of China Finance Research Center at Tsinghua University. He was President of the Western Finance Association (2017-2018).