Finance in East Asia

The objective of this module is to provide necessary knowledge to help students understand fundamental theories of corporate finance; the differences between the Chinese financial system and financial systems in mature market economies; and how these differences explain the observed discrepancies in corporate financing behavior between Chinese firms and firms in mature market economies. The module focuses on features of the Chinese banking sector and Chinese capital markets, including the stock market, the bond market and other informal financing channels. These features are explained in relation to China’s institutional arrangements.

Prerequisites

A prerequisite for this module is Financial Strategy (151030012) in Term 1

Objectives and learning outcomes of the module

At the end of this module students should be able to:

• Understand why the Chinese finance system is different from other financial systems elsewhere
• Apply standard corporate finance theories to Chinese firms and explain why Chinese firms may behave differently from firms in mature market economies
• Obtain updates about the most recent development in Chinese capital markets such as the corporate bond market, private equity, and the shadow banking system in China.

Disclaimer

Important notice regarding changes to programmes and modules