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 Researchers Experimentally Demonstrate Positive Effects of Urban Parks on the Brain
Scientists at HSE University have investigated the effect of parks on the cognitive and emotional resources of city dwellers. The researchers compared brain electrical activity in 30 participants while they watched videos of walks through parks and along busy highways. The results showed that green urban environments with trees produce a consistent effect across individuals, helping the brain calm down and relax. By contrast, walks along busy streets were found to be distracting. The findings have been published in Scientific Reports.
Fourth Robotics Festival to Take Place at HSE University
From April 1 to 3, 2026, the HSE Pokrovka Campus will host the Fourth Robotics Festival—one of the key events organised by the Faculty of Computer Science for anyone interested in robotics, programming, and engineering creativity. The festival will bring together robotics competitions, discussions, educational formats, and demonstrations of technological developments.
HSE to Launch Laboratories in Space Research and Nanoelectronics with One of India’s Top Universities
Scientists from the HSE University and the Indian Institute of Technology Bombay (IIT Bombay) will carry out joint research in the storage, transmission, and processing of data in space systems. A second major project will be a laboratory for superconducting spintronics—a promising field in modern nanoelectronics.
HSE Scientists Develop Method to Stabilise Iodine in Solar Cells
Scientists at HSE MIEM, in collaboration with colleagues from China, have developed a method to improve the durability of perovskite solar cells by addressing iodine loss from the material. The researchers introduced quaternary ammonium molecules into the perovskite structure; these molecules form strong electrostatic pairs with iodine ions, effectively anchoring them within the crystal lattice. As a result, the solar cells retain more than 92% of their power after a thousand hours of operation at 85°C. The study has been published in Advanced Energy Materials.
HSE Researchers Create Genome-Wide Map of Quadruplexes
An international team, including researchers from HSE University, has created the first comprehensive map of quadruplexes—unstable DNA structures involved in gene regulation. For the first time, scientists have shown that these structures function in pairs: one is located in a DNA region that initiates gene transcription, while the other lies in a nearby region that enhances this process. In healthy tissues, quadruplexes regulate tissue-specific genes, whereas in cancerous tissues they influence genes responsible for cell growth and division. These findings may contribute to the development of new anticancer drugs that target quadruplexes. The study has been published in Nucleic Acids Research.
Mathematician from HSE University–Nizhny Novgorod Solves Equation Considered Unsolvable in Quadratures Since 19th Century
Mathematician Ivan Remizov from HSE University–Nizhny Novgorod and the Institute for Information Transmission Problems of the Russian Academy of Sciences has made a conceptual breakthrough in the theory of differential equations. He has derived a universal formula for solving problems that had been considered unsolvable in quadratures for more than 190 years. This result fundamentally reshapes one of the oldest areas of mathematics and has potential to have important implications for fundamental physics and economics. The paper has been published in Vladikavkaz Mathematical Journal.
HSE AI Research Centre Simplifies Particle Physics Experiments
Scientists at the HSE AI Research Centre have developed a novel approach to determining robustness in deep learning models. Their method works eight times faster than an exhaustive model search and significantly reduces the need for manual verification. It can be applied to particle physics problems using neural networks of various architectures. The study has been published in IEEE Access.
Scientists Show That Peer Influence Can Be as Effective as Expert Advice
Eating habits can be shaped not only by the authority of medical experts but also through ordinary conversations among friends. Researchers at HSE University have shown that advice from peers to reduce sugar consumption is just as effective as advice from experts. The study's findings have been published in Frontiers in Nutrition.
HSE University Establishes Cybersecurity Department
The HSE University Moscow Tikhonov Institute of Electronics and Mathematics (MIEM) has established a new Department of Cybersecurity. This move consolidates MIEM’s educational, scientific, and expert resources in information and computer security, expands its portfolio of educational programmes, strengthens partnerships with industry leaders, and enhances HSE’s position as a leading centre of cybersecurity competence.
HSE University to Host Second ‘Genetics and the Heart’ Congress
HSE University, the National Research League of Cardiac Genetics, and the Central State Medical Academy of the Administrative Directorate of the President will hold the Second ‘Genetics and the Heart’ Congress with international participation. The event will take place on February 7–8, 2026, at the HSE University Cultural Centre.