“Pricing of Stock Uncertainty under Short-Selling Constraints in China Stock Market.”

Department of Finance

A short report from Chien Yi-Ching.

I attended the Econometric Society World Congress (ESWC) 2025 will took place in Seoul, Korea, Monday August 18 to Friday August 22, 2025, where I successfully presented my paper titled “Pricing of Stock Uncertainty under Short-Selling Constraints in China Stock Market.”

The paper investigates how China’s unique institutional setting shapes the pricing of uncertainty at the individual stock level, with a focus on short-selling constraints and their interaction with information asymmetry. In the presentation, I emphasized that China’s binding conditions for short-selling create dynamics that are specific to the Chinese equity market and differ significantly from the experience in other countries. Additionally, I demonstrated that the relaxation of these constraints does not eliminate the negative uncertainty premium, suggesting deeper structural features in the market that merit further exploration. Beyond my own presentation, I attended many lectures, plenary talks, and discussion sessions, and several of them were particularly insightful for my future research.

Attending ESWC 2025 provided me with an invaluable opportunity to share my research with a global audience, gain feedback from leading scholars, and broaden my understanding of macro-financial policy debates. I look forward to integrating these lessons into my ongoing research agenda and contributing to future conversations at the intersection of finance, economics, and policy.