MF50004.01 · Semester 1, 2026–2027
School of Economics, Fudan University · EMA
Direct vs indirect finance · why intermediaries exist · China’s system and its regulators
Present value · yield to maturity · duration · why rates change · China’s rate environment
Risk and term structure of rates · diversification and CAPM · the efficient market hypothesis
Adverse selection and moral hazard · the stages of a financial crisis · China’s stimulus and Baoshang
In review
Central bank tools · the PBoC framework · payments, BigTech lending, e-CNY
Bills, repo, CDs, commercial paper · China’s interbank market and the rate corridor
Government, municipal and corporate bonds · China’s dual-track market, LGFVs, defaults
How shares trade · valuation · China’s multi-level market, IPO reform, the A-H premium
What a bank holds and owes · capital adequacy · China’s margin squeeze
Why banks are regulated · industry structure · WMPs and the asset-management rules
Mutual and hedge funds · investment banks and brokers · PE, VC, insurance, pensions
Team presentations · the twelve weeks on one page · final paper guidance
Pricing the four credit-market instruments · duration and convexity · risk and term structure · portfolio risk and the CAPM · a bank’s deposit decision
Week 8
Money market instruments · credit spreads · equity valuation · one data exercise you download and compute yourself
Week 6
Presented in Week 12. Details to follow.
Two meetings of 90 minutes, each two 45-minute sessions. Sessions 1 and 2 take the general theory and the developed-market evidence; sessions 3 and 4 take Chinese institutions and data. Most meetings close on a real, named case.
Mishkin & Eakins, Financial Markets and Institutions, 9th Global Edition (required). Amstad, Sun & Xiong, The Handbook of China’s Financial System (supplementary).
Attendance 5% · participation 5% · assignments 40% (two individual plus one group case) · research paper 50%.