Syllabus of China Financial System (Draft)

International MA Program

School of Economics, Fudan University

Spring Semester, 2015

Course name: / China’s Financial System
Course number: / EMAE620015
Language of instruction: / English
Term: / Spring
Course meeting time: / 8:00-11:35 am. Monday
Course meeting place: / Teaching Building 6, H6302
Professor: / Yin Xingmin
Contact information: / mobile: 186-0166-5591
Office address: / Office Room 703, Economics Mansion
Office hour: / 15:00-16:30 pm. Tuesday and after class, or by appointment

Course Description:

Overview of China’s financial system, the banking and intermediation sector, understanding China’s interest rates, central banking and the conduct of monetary policy, money and inflation, financial intermediation and credit policy in economic development, the interaction between monetary and fiscal policies, the money markets, the capital markets, the mortgage markets, debate on RMB exchange rate policy, commercial banking industry, banking regulation, securities and investment funds, and financial system and economic performance.

Learning Objectives:

It provides the understanding of China’s financial development and examines the role of financial system in supporting the growth of its economy, and further explores the direction of its financial development.

Course Prerequisites:

It is better for students who have the basic knowledge of development economics, and financial markets and institutions.

Course Requirements:

There will be three rounds of homeworkand final examination. The exam will cover the lectures and readings.

Homework:

◇Students required to submitting three short essays, one on China’s financial development and system, second on financial markets, and third on monetary policy or liberalization of interest rates. The topic should encompass the basic aspects and recent development of China’s financial system.

◇The essay should be a word document of 3-5 pages in length, not including graphs or illustrations. Essays that are too long or too short will be marked down. The essay must be single spaced, and must be include proper references, bibliography and citation.

◇The deadline of the essay submission will be announced in the beginning of this course, the printed version is required. Works submitted after the deadline will incur a penalty of 5% off the grade for the assignment for each weekday late.

Attendance and Class Participation

Students are expected to:

·Be active in class, participate and contribute to the class discussion;

·Read assigned readings before coming to class on the day that they are assigned so that students can participate in the class discussion;

·Attend all the lectures, discussions, and instructor organized events.

Methods of Instruction

Instruction methods include lectures, discussions, class debates and case studies.

Assessment and Final Grade

There are three rounds of homework and a final exam with the closed-book type. The final letter grade will be a weighted average of three essays (30%), and the final exam (60%). Besides, student attendance, presentation and class participation will account for 10%.

  1. Attendance, presentation and participation: 10%
  2. Three essays: 30%
  3. Final exam: 60%

Major Reading Books and Materials:

1. James R. Barth, John A. Tatom, Glenn Yago, China’s Emerging Financial Markets: Challenges and Opportunities, Spinger, 2009 by Milken Institute. 1-640.

2. Franklin Allen, Jun Qian, and Meijun Qian, “China’s financial system: past, present, and future,”in Loren brandt and Thomas G. Rawski, ed., China’s Great Economic Transformation, Cambridge University Press 2008. 535-552.

3. Barry Naughton, “Financial system” in Barry Naughton. The Chinese Economy. MIT press. 2008. 451-484.

4. Morris Goldstein and Nicholas Lardy, eds. Debating China’s Exchange Rate Policy. Peterson Institute for International Economics. 2008.

5. Frank J. Fabozzi, Franco Modigliani, and Frank J. Jones, Foundations of Financial Markets and Institutions, Pearson Education, 2010, or China Machine Press, 2011.

6. R. Glenn Hubbard, Money, the Financial System, and the Economy, 5th ed., Pearson Education, 2005, or China Machine Press, 2008.

7. PBC, China Monetary Report (quarterly). various issues.

8. Papers and essays on China’s financial development and policies.

Weekly Schedule

Week / Date / Topic
Unit one: Overview of Financial System and Theory Discussion
1 / 9/3 / Introduction to China’s Economic Development
Overview of China’s Financial System (1)
2 / 16/3 / Overview of China’s Financial System (2)
Class Discussion
3 / 23/3 / Theoretical Analysis of Financial System: Comparative Studies
More Class Discussion in this Topic
Homework Assignment (1): Comparative Studies on Financial System
Unit Two: Financial Markets
4 / 30/3 / Financial Markets: Basic Concepts
5 / 6/4 / Capital Market Development: Stock and Bond Markets
Essay Submission
6 / 13/4 / The Mortgage Market
Class Discussion on Students’ Essays (1)
Homework Assignment (2): Mortgage Markets
Unit Three: Financial Institutions
7 / 20/4 / An Economic Analysis of Banking Structure
8 / 27/4 / Banking Industry: Structure and Competition
Essay Submission
9 / 4/5 / Non-Banking Financial Institutions and Financial Regulations
Class Discussion on Students’ Essays (2)
Homework Assignment (3): Monetary Policy
Unit Four: Monetary Policy
10 / 11/5 / Central Bank and the Conduct of Monetary Policy
11 / 18/5 / Liberalization of Interest Rates in China
12 / 25/5 / Debate on China’s Exchange Rate Policy
Essay Submission
Unit Five: Financial Development and Economic Growth
13 / 1/6 / Financial Development and Economic Growth: Comparative Studies
Class Discussion on Students’ Essays (3)
14 / 8/6 / Exam

Note: The topic of homework will be specified by instructor according to class discussion.

Course Instructor

Professor Xingmin YIN received his PHD from the University of Sussex, the United Kingdom (1994), and holds an MA in international Relations and BA in History from Nanjing University. He is very active and productive in research as well as policy consulting fields. Dr. Yin is a full professor of Economics at the Fudan University. He has published 15 books and textbooks, and about 100 research papers and essays on China’s economic and financial development in leading economic journals and national newspapers.

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