2016/9/8 About financial Markets Chinese financial markets · Basic Questions Introduction and overview How do we define the financial markets? of the Financial Market What is the major function and instruments in the financial markets By Zhang Xiaorong How do we evaluate whether the market is goo Fudan University, Shanghai, China Why the course? Text Book This course aims to providing the international Foundations of financial markets and students with nstitutions, 4th Edition an understanding of the basic mechanism in the By Frank J Fabozzi/Franco Modigliani/Frank J.Jones financial market Copyright Pearson Education, reprinted by CMP(China) the chinese characteristics of chinese financia Talks mainly the markets and schemes in the US, but markets(by comparing with some more advanced) not china the reforms that have been done and challenges ahead No textbook specifically talking about china Text Book Course structure Introduction of financial markets and financial assets Exchange Rate 金融市场 与金融机构基础 History of the Chinese Stock Forex Before 1978Banking System Markets Markets Banking SectorStructure Exchange after 2003 Rate reform 12016/9/8 1 Chinese Financial Markets Introduction and Overview of the Financial Market Sept.‐Dec.2016 By Zhang Xiaorong Fudan University,  Shanghai, China 0-1 About Financial Markets • Basic Questions – How do we define the financial markets? – What is the major function and instruments in the financial markets? – Who are the key players? (the government’s role?) – How are the financial markets organized? – How do we evaluate whether the market is good or not so good? 0-2 Why the Course? • This course aims to providing the international students with – an understanding of the basic mechanism in the financial market – the Chinese characteristics of Chinese financial markets (by comparing with some more advanced) – the reforms that have been done – and challenges ahead 0-3 Text Book Foundations of Financial Markets and Institutions, 4th Edition – By Frank J. Fabozzi/Franco Modigliani/Frank J. Jones – Copyright Pearson Education, reprinted by CMP (China) – Talks mainly the markets and schemes in the US, but not China – Translated version in Chinese is available – No textbook specifically talking about China 0-4 Text Book 0-5 Course Structure 0-6 Introduction of Financial Markets and Financial Assets Central Bank Commercial Banks Exchange Rate Regimes Stock Market PBoC Before 1978 History of the Banking System Chinese Stock Markets Reform of PBoC and Monetary Policy Reforming Banking Sector after 2003 RMB Exchange Rate Reform Split‐Share Structure Reform Forex Markets