Short View on the Stock Markets

May 5 2016
Written by NYU Shanghai

Over the past year, wild swings in the Chinese stock market have drawn worldwide attention. On April 26, Professor Matthew Richardson of the NYU Stern School of Business, together with Dr. Xin Zhou, the Executive Director of NYU Shanghai’s Volatility Institute (VINS), dispelled some of the myths and analyzed the main drivers of Chinese stock price volatility.

At the extremely well attended second lecture of 2016 VINS/TCFA Financial Engineering Practice and Innovation Lecture Series, Richardson explained how in fact the volatility of Chinese stock prices relates to global volatility, regional volatility in China, state owned versus private enterprises and industry volatility. The research data was acquired at the Volatility Institute.

Despite China’s unorthodox methods, the Chinese stock market functions and reacts much the same way the rest of the global market does, "but with more intensity,” Richardson underscored during his talk.

(Text by: Leidy T.)