From Machine Learning in Investment Strategies to Climate Shocks: Highlights of the 14th Financial Economics Conference at ICEF
How are investment decisions changing under conditions of inflationary shocks and the application of machine learning methods? Can financial risks be predicted using new metrics? What is the role of banks' climate resilience, and how do geopolitical upheavals affect global value chains? These questions were at the centre of discussion at the 14th International Moscow Conference on Financial Economics held on November 28 and organised by the International College of Economics and Finance (ICEF) at HSE University.
Bringing together researchers from universities in South Korea, China, Italy, Switzerland, the USA, and Russia, the conference served as a platform not only for presenting new scientific ideas but also for discussing the challenges facing the modern financial system.
In his opening remarks, Vladimir Sokolov, Chair of the Conference Organising Committee and Head of the ICEF Laboratory in Financial Economics at HSE University, noted that the current agenda in financial economics is increasingly shaped by instability, technological shifts, and institutional challenges.
‘Many of the studies presented at the conference directly address contemporary challenges, from climate risks to trade wars. We are glad that our conference continues to serve as a meeting point for both leading international researchers and early-career scientists, emphasised Vladimir Sokolov.
Prediction Markets, Cryptocurrencies, and Rethinking Investment Strategies
The first session focused on new empirical methods for analysing financial markets. Prof. Chulwoo Han (Sungkyunkwan University, South Korea) presented research using machine learning to predict returns. The results showed the superiority of a new ‘deep momentum’ method over traditional investment strategies.
The paper by Lorenzo Schönleber (University of Turin, Italy) delivered a comparative analysis of the Polymarket prediction market and Bitcoin derivatives. His work demonstrated that prediction markets can effectively aggregate information, creating alternative pricing mechanisms.
Trade Wars and Income Risks: How Shocks Change Investor Behaviour
The session on global shocks showed how structural changes in world trade and income inequality shape investor behaviour strategies.
The research by Yan Dong (Southwestern University of Finance and Economics, China) demonstrated how tariff barriers are forcing Chinese production chains to relocate abroad. Tai Lo Yeung (University of Lugano, Switzerland) showed that labour income volatility affects investors' risk appetite: portfolio decisions become asymmetric under positive and negative income shocks.
From Inflation Risks to the Reliability of Diversification: A Changing Perspective on the Banking Sector and Derivatives
The conference's final session was devoted to new approaches to assessing bank strategies, derivative pricing, and managing inflation risks.
Jasper Pan (TCNJ School of Business, USA) proposed a new metric for bank diversification, which, according to his results, better predicts stability compared to existing indicators.
Jitendra Tayal (Ohio University, USA) demonstrated that short-sale risk negatively affects put option returns, calling into question the efficiency of pricing in this market.
Meanwhile, Han Xiao (The Chinese University of Hong Kong, China) showed how mutual funds adjust portfolios based on inflation forecasts, thereby reducing their investors' exposure to market risk.
Climate Risks and Bank Resilience: The Perspective of Allen Berger
The highlight of the conference was the keynote speech by Prof. Allen N. Berger (University of South Carolina, USA), one of the world’s most highly cited scholars in banking research.
In his lecture, he presented a conceptual model of the transmission channels of climate risks including risks associated with the transition to a low-carbon economy and those caused by natural disasters into asset valuation, regulatory policy, and the resilience of banking system stability. According to Berger, climate change is no longer an external threat but a central factor transforming the financial sector.
All presentations were followed by active discussion and comments from colleagues at HSE University, the New Economic School, and the University of South Carolina. The organisers emphasised that the conference was a venue not only for exchanging ideas but also for strengthening international academic collaboration. The next, fifteenth, International Moscow Finance Conference is scheduled for November 2026.
See also:
HSE Students Among Winners of Yandex High-Tech Startup Accelerator
Yandex has announced the results of its Yandex AI Startup Lab accelerator, whose final round featured 12 IT projects. Over the course of three months, their creators—students and young entrepreneurs—worked alongside the company’s experts to develop their products. Four startups in digital marketing, medicine, and robotics were named the best, with their teams receiving cash prizes and cloud resource grants. Among them was Gradius, a startup founded by students from HSE University.
HSE to Bring Together Experts from World’s Leading Universities in St Petersburg
From May 18 to 22, 2026, HSE University–St Petersburg will become a hub of global academic dialogue. International Partners’ Week will bring together more than 100 delegates from 47 universities across 20 countries.
‘Any Real-Economy Company Can Use Our Products’
The HSE Centre for Financial Research and Data Analytics combines fundamental and applied work, including in areas unique to Russia such as the connection between sentiment in the media and social networks and financial markets. The HSE News Service spoke with the centre’s director, Professor Tamara Teplova, about its work.
Researchers Find More Effective Approach to Revealing Majorana Zero Modes in Superconductors
An international team of researchers, including physicists from HSE MIEM, has demonstrated that nonmagnetic impurities can help more accurately reveal Majorana zero modes—quantum states considered promising building blocks for quantum computing. The researchers found that these impurities shift the energy levels that typically obscure the Majorana signal, while leaving the mode itself largely unaffected, thereby making its spectral peak more distinct. The study has been published in Research.
New Development by HSE Scientists Helps Design Reliable Electronics Faster at a Lower Cost
Scientists from HSE MIEM have developed a new approach to modelling electrothermal processes in high-power electronic circuits on printed circuit boards (PCB). The method allows engineers to quickly and accurately predict how electronic components heat up during operation, helping prevent overheating and potential failures. The results have been published in Russian Microelectronics.
HSE and Peking University Discuss Prospects for Expanding Cooperation
In Moscow, HSE University’s leadership met with a delegation from Peking University headed by its President, Gong Qihuang. During the meeting, the parties agreed to strengthen partnership between the two universities within the framework of the Cross Years of Russian–Chinese Cooperation in Education (2026–2027).
HSE and Nazarbayev University: Scientific and Educational Cooperation
In April 2026, HSE University welcomed an official delegation from Nazarbayev University. The visit primarily focused on establishing cooperation between the two universities, expanding partnership ties, and developing joint projects in support of strengthening bilateral relations between Russia and Kazakhstan.
‘Meet Professors, Gain Experience’: Uzbek Lyceum Students Undertake Placement at HSE
The fourth off-site school organised under the Lyceum Classes project has taken place with the support of HSE University and implemented by the HSE Department of Internationalisation. This year, 79 students from International House Tashkent and Interhouse Lyceum came to HSE. The programme includes an introduction to the university, the opportunity to attend classes, and tours around Moscow.
HSE Biologists Identify Factors That Accelerate Breast Cancer Recurrence
Scientists at HSE University have identified a molecular mechanism underlying aggressive breast cancer. They found that the signals supporting tumour growth originate not from the tumour itself but from its microenvironment. The researchers also demonstrated that reduced levels of the IGFBP6 protein in the tumour microenvironment lead to the accumulation of macrophages—immune cells associated with a higher risk of cancer recurrence. These findings already make it possible to assess patient risk more accurately and may, in the future, enable the development of drugs that target cells of the tumour microenvironment. The study has been published in Current Drug Therapy.
HSE University and Moscow DIT Partner to Advance 5G and 6G Networks
The Moscow Department of Information Technology and HSE University have signed a cooperation agreement in the field of innovative development of the capital’s IT infrastructure. The parties agreed on joint research into modern and promising communication technologies, including 5G and 6G, as well as AI, the Internet of Things, and other smart city technologies.