Fudan Summer series Chinese financial markets Xiaoong Zhang, Department of finance, School of management Course desce This course aims to providing the international students with an understanding of how the Chinese financial markets originated and developed, what reforms have been done, the Chinese characteristics, and challenges and difficulties in future reforms Starting with a comprehensive introduction, the course covers the major financial markets in China, inc luding the central bank and the banking system, the security market and the foreign exchange market. Each market will be an indiv idual topic, for which the instructor will first review the fundamental concepts and theories, explain the history and facts in China, compare the domestic system with that of the international, present examples and cases, and finally talk about the future reforms The total teaching time will be 40 teaching hours. The class will be d ivided into 8 each of which is composed of 6-7 students. Each group will give a 30-m inute presentation on a designated topic by the lecturing professor. No final exam would be set, but each student will write an individual thes is before the end of the course The course will be conducted in English. Textbooks, instructor's PPT files and supplementary readings will all be provided in English. Students also write their final theses in English Textbook Foundations of Financial Markets and Institutions (4th Edition, FM), by Frank J. Fabozzi Franco Modigliani, Frank J. Jones, ISBN: 978-7-111-32325-9, November 1, 2010, Pearson Education( Re-printed by China Machine Press) Supplementary reading will be uploaded in the university elearning system Grading Classroom attendance and partic ipation 20% Classroom project presentation Final thesis(individual)
1 Fudan Summer Series Chinese Financial Markets Xiaorong Zhang, Department of Finance, School of Management Course Description This course aims to providing the international students with an understanding of how the Chinese financial markets originated and developed, what reforms have been done, the Chinese characteristics, and challenges and difficulties in future reforms. Starting with a comprehensive introduction, the course covers the major financial markets in China, inc luding the central bank and the banking system, the security market and the foreign exchange market. Each market will be an individual topic, for which the instructor will first review the fundamental concepts and theories, explain the history and facts in China, compare the domestic system with that of the international, present examples and cases, and finally talk about the future reforms. The total teaching time will be 40 teaching hours. The class will be divided into 8 groups, each of which is composed of 6-7 students. Each group will give a 30-minute presentation on a designated topic by the lecturing professor. No final exam would be set, but each student will write an individual thesis before the end of the course. The coursewill be conducted in English. Textbooks, instructor’s PPT files and supplementary readings will all be provided in English. Students also write their final theses in English. Textbook Foundations of Financial Markets and Institutions (4th Edition, FMJ), by Frank J. Fabozzi, Franco Modigliani, Frank J. Jones, ISBN：978-7-111-32325-9，November 1, 2010, Pearson Education (Re-printed by China Machine Press) Supplementary reading will be uploaded in the university eLearning system. Grading Classroom attendance and participation 20% Classroom project presentation 30% Final thesis (individual) 50%
Teaching plan Class 1(Jul. 5) Introduction 1. Student Self Introduction 2. Course Introduction Financ ial Assets. Financial Institutions and Financ ial Market READING: FMJ Chapter I Elliott, Douglas and Kai Yan, "The Chinese Financial System: An Introduction and Overview", John L. Thornton China Center Monograph Series, July 2013 Class 2(JuL 6) The Central Bank and the PboC(1) 1. Monetary Authority and Monetary Policy 2. History and Role of People's Bank of China READING: FMJ Chapter 4 PBoC Annual Report, 2013 Class 3(Jul 8) The Central Bank and PBoC(2 1. Interpreting PBoC's Monetary Polices since 2000 2. Student presentations I) the role of the Euopean Central Bank 2 )the role of the Us Federal reser ne READING: FMJ Chapter 5 Class 4(Jul 12) Banking System in China(1) Depositary Institutions and Basal Accord 2. Current Chinese Banking System READING: FM Chapter 3 Okazaki, Kum iko, "Bank ing System Reform in China: the Challenges of Moving Toward a Market-Oriented Economy", Rand National Security Research Division. 2007 Leigh, Lamin and Richard Podpiera, The Rise of Foreign Investment in Chinas Banks-Taking Stock" IMF working paper, WP/06/292, 2006 Class 5(Jul 13) Banking System in China(2) 1. The Reform of Chinese Banking System in 2000s 2. Interest Rate Liberalization and Internet finance in china 3. Student Presentations 3)How will interest rate liberalization reshape the Chinese banking industry 4)P2P lending in China: What went wong READING Economides, Nicholas,The Impact of the Internet Finance on Financ ial markets
2 Teaching Plan Class 1 (Jul. 5） Introduction 1. Student Self Introduction 2. Course Introduction 3. Financial Assets, Financial Institutions, and Financial Markets READING: FMJ Chapter 1 Elliott, Douglas and Kai Yan, “The Chinese Financial System: An Introduction and Overview”, John L. Thornton China Center Monograph Series, July 2013 Class 2 (Jul. 6) The Central Bank and the PBoC (1) 1. Monetary Authority and Monetary Policy 2. History and Role of People’ s Bank of China READING: FMJ Chapter 4 PBoC Annual Report, 2013 Class 3 (Jul. 8） The Central Bank and PBoC (2) 1. Interpreting PBoC’s Monetary Polices since 2000 2. Student Presentations 1) the Role of the European Central Bank; 2) the Role of the US Federal Reserve READING: FMJ Chapter 5 Class 4 (Jul. 12） Banking System in China (1) 1. Depositary Institutions and Basal Accord 2. Current Chinese Banking System READING: FMJ Chapter 3 Okazaki, Kumiko, “Banking System Reform in China: the Challenges of Moving Toward a Market-Oriented Economy”, Rand National Security Research Division, 2007 Leigh, Lamin and Richard Podpiera, “The Rise of Foreign Investment in China’s Banks—Taking Stock”, IMF working paper, WP/06/292, 2006 Class 5 (Jul. 13） Banking System in China (2) 1. The Reform of Chinese Banking System in 2000’s 2. Interest Rate Liberalization and Internet Finance in China 3. Student Presentations: 3) How will interest rate liberalization reshape the Chinese banking industry? 4) P2P lending in China: What went wrong? READING: Economides, Nicholas, “The Impact of the Internet Finance on Financial Markets
Class 6(Jul 15) Visiting shanghai Futures exchange Class 7(JuL. 19) The Stock Market in China (1) 1. Trading mechanism in Stock Exchange 2. The History of Chinese Stock Market 3. The Split-Stock Refo READING: FM Chapter 18 Chen, Zhiwu, "Stock Market in China' Modernization Process: Its Past Present and Future Prospects Qi Bin, "Nontradable Share Reform in Chinese Stock Market", 2007 Class 8(JuL 20) The Stock Market in China(2) 1. Speculative Bubbles in the Chinese Stock Market 5) The Transition from Approval-based to Registration-based IPO System: the 6)How to Curb the Over Speculation in the Chinese Stock Market READING: FM Chapter 19 Class 9(JuL. 22) Individual Thesis Writing Tutoring and Q&a Individual thesis due on 12: 00am(midnight) July 25th. Class 10(JuL. 26) RMB Exchange Rate Reform(1) Exchange Rate and Exchange Rate Regime 2. The Impossible Triangle in International Economic 3. History of RMB Exchange Rate Reform READING: Habermeier, KarL, etal., "Revised System for the Classification of Exchange Rate Arrangement", IMF working paper, WP/09/211, 2009 Yi Gang, " Exchange Rate Arrangement: Flexible and F ixed Exchange Rate Debated Revis ited"2013 Class 11(JuL 27) RMB Exchange Rate Reform(2) 1. Function of RMB offshore market 7) The mad of rMB Going International 8)Is it the right time to open the Chinese financial market? Class 12(Jul 29) Thesis Evaluation and Comments Teaching contents and agenda may be adjusted according to the classroom response
3 Class 6 (Jul. 15） Visiting Shanghai Futures Exchange Class 7 (Jul. 19) The Stock Market in China (1) 1. Trading Mechanism in Stock Exchange 2. The History of Chinese Stock Market 3. The Split-Stock Reform READING: FMJ Chapter 18 Chen, Zhiwu, “Stock Market in China’ Modernization Process: Its Past, Present and Future Prospects”, Qi, Bin, “Nontradable Share Reform in Chinese Stock Market”, 2007 Class 8 (Jul. 20) The Stock Market in China (2) 1. Speculative Bubbles in the Chinese Stock Market 2. Student Presentations 5) The Transition from Approval-based to Registration-based IPO System: the benefits and obstacles; 6) How to Curb the Over Speculation in the Chinese Stock Market; READING: FMJ Chapter 19 Class 9 (Jul. 22） Individual Thesis Writing Tutoring and Q&A Individual thesis due on 12:00am(midnight) July 25th . Class 10 (Jul. 26) RMB Exchange Rate Reform (1) 1. Exchange Rate and Exchange Rate Regime 2. The Impossible Triangle in International Economic 3. History of RMB Exchange Rate Reform READING: Habermeier, Karl, etal., “Revised System for the Classification of Exchange Rate Arrangement ”, IMF working paper, WP/09/211, 2009 Yi, Gang, “Exchange Rate Arrangement: Flexible and Fixed Exchange Rate Debated Revisited”, 2013 Class 11 (Jul. 27) RMB Exchange Rate Reform (2) 1. Function of RMB offshore Market 2. Student Presentations 7) The road of RMB Going International 8) Is it the right time to open the Chinese financial market? Class 12(Jul. 29) Thesis Evaluation and Comments Teaching contents and agenda may be adjusted according to the classroom response