MF50004.01 · Semester 1, 2026–2027

Financial Institutions and Markets

School of Economics, Fudan University · EMA

Prof. Jiajun Jiang · 12 weeks × 2 meetings × 2 × 45-minute sessions

Weekly decks12 weeks · 1 released

01

Overview of the Financial System

Direct vs indirect finance · why intermediaries exist · China’s system and its regulators

Mishkin 1–2 · Handbook Intro, Ch. 1 · 59 slides

02

In review

Interest Rates: Valuation and Risk

Present value · yield to maturity · duration · why rates change · China’s rate environment

Mishkin 3–4 · Assignment 1 set · 48 slides

03

In review

Risk, Term Structure, and Efficiency

Risk and term structure of rates · diversification and CAPM · the efficient market hypothesis

Mishkin 5–6 · 43 slides

04

In review

Financial Intermediation and Crises

Adverse selection and moral hazard · anatomy of a crisis · China’s stimulus and Baoshang

Mishkin 7–8 · Handbook 6 · Assignment 1 due · 46 slides

05

In review

Central Banking, Monetary Policy, FinTech

Central bank tools · the PBoC framework · payments, BigTech lending, e-CNY

Mishkin 9–10 · Handbook 2, 3, 17 · 46 slides

06

Money Markets

Bills, repo, CDs, commercial paper · China’s interbank market and the rate corridor

Mishkin 11 · group case topics chosen

07

Bond Markets

Government, municipal and corporate bonds · China’s dual-track market, LGFVs, defaults

Mishkin 12 · Handbook 5, 8

08

Stock Markets

How shares trade · valuation · China’s multi-level market, IPO reform, the A-H premium

Mishkin 13 · Assignment 2 set

09

Banking I: Balance Sheet and Management

What a bank holds and owes · capital adequacy · China’s margin squeeze

Mishkin 17 · Handbook 1

10

Banking II: Regulation and Shadow Banking

Why banks are regulated · industry structure · WMPs and the asset-management rules

Mishkin 18–19 · Assignment 2 due

11

Non-Depository Institutions

Mutual and hedge funds · investment banks and brokers · PE, VC, insurance, pensions

Mishkin 20–22 · Handbook 14, 15, 16

12

Group Case Presentations and Synthesis

Team presentations · the twelve weeks on one page · final paper guidance

Group case study presented

The course

How a week runs

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.

Textbooks

Mishkin & Eakins, Financial Markets and Institutions, 9th Global Edition (required). Amstad, Sun & Xiong, The Handbook of China’s Financial System (supplementary).

Assessment

Attendance 5% · participation 5% · assignments 40% (two individual plus one group case) · research paper 50%.