Author: Zhou Weixing
Affiliation: School of Business
Publisher: Shanghai University of Finance and Economics Press
Publication Year: 2007
ISBN: 9787810988865
A Guide to Financial Physics, authored by Zhou Weixing and published in 2007 by Shanghai University of Finance and Economics Press, is the first comprehensive work in China to systematically introduce the field of Financial Physics. This book approaches financial markets as complex systems, primarily utilizing theoretical methods from statistical physics and nonlinear science for analysis. It provides an in-depth examination of key stylized facts in financial data, including the fat-tailed distribution of financial asset price fluctuations, the long-term memory properties of markets, and their multifractal characteristics. Furthermore, it provides a systematic discussion on the modelling and prediction of financial bubbles and anti-bubbles using frameworks like the log-periodic power-law singularity (LPPLS) model, and investigates microscopic market models based on the interactions between fundamental traders and noise traders. Its core academic value lies in its critical advancement of traditional financial theories, such as the Efficient Market Hypothesis, and in providing a novel, physics-based perspective and analytical toolkit for understanding the complexities of the financial market. The book has played a foundational and guiding role in the initiation and development of financial physics research in China.
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