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The Chinese Collectibles Bubble 2022-05-24

Subject:The Chinese Collectibles Bubble

Guest:Yongxiang Wang, Presidential Chair Professor of Finance, Chinese University of Hong Kong, Shenzhen

Host:Wang Yuxi, Associate Professor, ACEM-SJTU

Time:Thursday, May 26, 2022, 13:00-14:30

Venue:Tencent Meeting 

(Please send email to by 17:00 May. 25th for meeting number and password.)


Using novel, hand-collected data from the largest Chinese collectibles exchange, we examine an asset price bubble in the collectibles market in the 2010s. Because the securitized collectibles were traded outside the exchange, the fundamental price of the securities was publicly observable. This feature, combined with plausibly exogenous shocks to the cost of information acquisition, barriers to arbitrage, Tobin tax, and maturity allows us to further examine bubble theories in ways typically possible only in laboratory experiments. Our results are broadly consistent with resale-option theory, the importance of limited arbitrage, and provide support for the external validity of several key findings of the experimental bubble literature.

Guest Bio

Professor Yongxiang Wang holds the Presidential Chair Professor of Finance Chinese University of Hong Kong, Shenzhen. His work has been published in several leading international journals including American Economic Review, Journal of Political Economy, Review of Economic Studies, Journal of Public Economics, Journal of Financial Economics, etc. He has studied a range of prominent social, economic and political phenomena in China, including (1)privatization, (2) business groups, (3) workplace safety, (4) the “death ceiling” program, (5) Sino-Japanese conflict, (6) fellow election at the China Academy of Science, (7) rural land rental markets, (8) Politburo election, (9) air pollution and demand for health insurance, (10) loan officers' on-the-job trading, (11) the “Sent-down Youth” program during the Cultural Revolution, (12) superstition (Zodiac Year) and its real impact, (13) government expenditure auditing, (14) target setting and its impact in Chinese banking industry; and (15) local government response to citizen concerns during COVID-19.