Seminar (Dept. of Finance)

Theme：Chinese Collectibles Bubble

Speaker：Yongxiang Wang, USC Marshall School of Business

Time：2020-10-30 10:00

Address：Zoom APP

Language：English

Zoom APP

https://zoom.com.cn/j/69943946187?pwd=VVovTFZTNFMvL2tBckJTbVloblNUZz09

ID：699 4394 6187

Password：554391

ABSTRACT: 

Using hand collected data from a large Chinese collectibles exchange, we examine the collectibles bubble of the mid 2010s through the lens of various bubble theories. Two features of the data allow us to test the predictions of bubble theories in ways typically possible only in the laboratory. First, because the securitized collectibles were widely traded outside of the exchange, the fundamental price was publicly observable. Second, three events occurred in the time period covered by our dataset that serve as plausible exogenous natural experiments: 1) the publication of retail collectibles price information by the exchange, 2) a change in the listing rules that decreased the barriers to arbitrage, and 3) an unexpected order by the government mandating the closure of all collectibles exchanges in China. We find empirical support for resale-option theory, the importance of limits to arbitrage in maintaining price bubbles, and the external validity of experimental bubble studies.

SHORT BIOGRAPHY: 

Professor Yongxiang Wang has a broad range of interests in empirical corporate finance, political economy, organizational economics, and behavioral economics, with a main focus on China economy and Chinese financial markets. He is an associate editor at both the Review of Economics and Statistics and the Review of Finance. His work has been published at JPE, AER, RES, AEJ: Applied, JFE, RFS, JAE, ASQ, MS, SMJ and other journals. He is also a frequent referee for top Economics, Finance, Accounting, Management, Sociology, Political Science and also Science journals. His research projects have been supported by NSF grants from the USA, the United Kingdom, Australia and also China. His work has been covered by Science, Wall Street Journal, Business Week, The Economist, New York Times, and China Daily. He obtained his PhD in Finance from Columbia Business School in 2010, and his M.A. and also B.A. from Renmin University of China.