AXA Chair in Global Finance

The AXA Chair in Global Finance is a full-time permanent academic position, endowed by the AXA Research Fund. The AXA Chair is a highly competitive scheme, designed to support research excellence involving significant advancement in a research field within a host institution. Only 13 Chairs have been awarded globally in socio-economic risks, and the AXA Chair in Global Finance is the UK's first-ever AXA Chair in socio-economic risks.

2024 - Present

Professor Hong Bo: China’s Infrastructure Investment in Africa post Covid-19

Professor Hong Bo was appointed the new AXA Chair in Global Finance at SOAS University of London and Director of SOAS Centre for Global Finance in 2024.

Professor Hong Bo, specialising in Financial Economics at the School of Finance & Management, SOAS University of London, will dive into how China’s overseas infrastructure investment (OII) has undergone a process of adjustment since COVID-19.

About the Chair’s programme: China’s Infrastructure Investment in Africa post Covid-19

China’s overseas infrastructure investment (OII) has undergone a process of adjustment since Covid-19. First, in the past, China’s OII projects were often undertaken within an enclave system, including financing, procurement, construction, and loan repayment. The breakdown of supply chains during Covid-19 made such an operation impossible. Second, emergingdomestic economic problems since Covid-19 have become obstacles to China’s further economic growth, reducing China’s financial capacity. Third, risk management of China’s OII projects was previously weak. China determined the destination and scale of investment based mainly on diplomatic ties, geopolitical alignment, and political relationships with recipient countries, but negative shocks such as Covid-19 have brought about real consequences when host countries fail to repay China’s infrastructure lending. Fourth, geopolitics has become more important than ever in China’s overseas economic operations. The international community, including the US, EU, UK, and other OECD countries, has enhanced regulatory scrutiny of Chinese investment due to national security concerns, leading to stronger public resistance to China’s economic activities in host countries. Consequently, trade wars and the competition for critical resources have resulted in a revamp of the global supply chains.

What do these changes imply for Africa? The objective of this project is to empirically investigate the consequences of the above-mentioned changes on African host countries. At the country-level, the fundamental issue concerns what the alternative sources of financing are for African infrastructure if China stops or reduces its large scale infrastructure investments. What are the economic and social impacts of the decline of Chinese financing on the infrastructure development and economic performance of African countries? At the industry level, the export structure will change regarding the natural resources and energy sector in Africa. This is because African host countries are now less likely to payback infrastructure loans by exporting natural resources to China. What are the implications of such changes for the efficiency and green transition of the natural resources and energy sector in Africa? At the firm level, China’s adjustment of its OII operation suggests a trend of localising China’s investment in African countries. The related question concerns how African local economic participants can benefit from their interactions with Chinese investors. For example, if China switches from building huge physical infrastructure projects to small, soft, and tech-oriented projects, such as AI, digital, green, health, etc., then do local economic actors have the absorptive capacity to benefit from interacting with Chinese investors? What can Chinese investors do in facilitating technology transfer and productivity spillovers to African local firms? Evidence-based new insights provided by this research can help African policymakers prepare strategies regarding capacity building for local economic actors and developing host country governance and institutional framework.

2017 - 2024

Professor Victor Murinde: Mega Trends in Global Finance

In 2017, Professor Victor Murinde was appointed the AXA Chair in Global Finance at SOAS University of London. Supported by the AXA Chair scheme, the AXA Chair holder – Professor Murinde has founded the Centre for Global Finance (CGF) at SOAS University of London.

Led by Professor Murinde, The Chair’s Research fields are:

  • Flow of Funds: Identifying mega trends

  • Bank Risk and Regulatory Architecture

  • Inclusive Finance and Growth

The scientific aims of the research programme provide a step enhancement on Murinde’s earlier work in at least three main dimensions:

  • Introduce dynamics and uncertainty to a static flow-of-funds framework, to investigate mega trends in global finance and risk, given evolving competitiveness, institutional change and technological innovations

  • Build large datasets and apply new developments in econometrics to research bank behaviour in the evolving global financial regulation

  • Track megatrends and model their impact on global financial systems

The potential outputs, for academia and society, include:

  • Articles published in top-rated journals

  • Large datasets, real time indicators, forecasts and simulations, and policy/practitioner briefs, on emerging mega trends

  • Evidence for new financial products and instruments (e.g., from RCT).

  • Annual conference and flagship report, Mega Trends in Global Finance and Risk.

In 2024, Professor Victor Murinde was appointed the Executive Director of the African Economic Research Consortium (AERC) headquartered in Nairobi, Kenya.