Name: Dr David K. Du

Location: Level 12, Nexus 10 Building

E-mail: Kai.du@adelaide.edu.au 

By taking this course, students are expected to have a good knowledge of the financial market in China, and be able to examine the financial products in China, overview the various exchanges, and analyse the banking and insurance sectors. Secondly, students are expected to have a good understanding on the current regulatory environment in which wealth management is conducted , and should be able to conduct business analysis, include analysing risks in handling financial intermediary processes, trade liberalization (WTO regulation in regards to the financial sector), repatriation of funds and investment processes in and out of China.

Please go through the following book before the first lecture: 

Fan, J. and Morck, R. (2012) Capitalizing China, University of Chicago Press, Chicago.

The working papers of this book will be provided in MyUni.

Introduction to the course

Allen F., Qian, J., Zhang, C., & Zhao, M. (2012). China’s Financial System: Opportunities and Challenges. NBER Working Paper No. 17828, Feb. 2012

Lu, Z., Zhu, J. and Zhang, W. (2012) “Bank discrimination, holding bank ownership, and economic consequences: Evidence from China”, Journal of Banking & Finance, 36: 341–54.

Jiang, G., Yue, H. and Zhao, L. (2009) “A re-examination of China’s share issue privatization”, Journal of Banking & Finance, 33: 2322–32

Ding, S., Guariglia, A. and Knight, J. (2013) “Investment and financing constraints in China, does working capital management make a difference”, Journal of Banking & Finance, 37: 1490–1507.

Calomiris, C., Fisman, R. and Wang, Y. (2010) “Profiting from government stakes in a command economy: Evidence from Chinese asset sales”, Journal of Financial Economics, 96: 399–412.

Meng, R., Ning, X., Zhou, X. and Zhu, H. (2011) “Do ESOPs enhance firm performance? Evidence from China's reform experiment”, Journal of Banking & Finance, 35: 1541–51.

Liang, Q., Xu, P. and Jiraporn, P. (2013) “Board characteristics and Chinese bank performance”, Journal of Banking & Finance, 37: 2953–68.

Liang, Q., Xu, P. and Jiraporn, P. (2013) “Board characteristics and Chinese bank performance”, Journal of Banking & Finance, 37: 2953–68.

Sun, Q., Tong, W. and Wu, Y. (2013) “Overseas listing as a policy tool: Evidence from China's H-shares”, Journal of Banking & Finance, 37(5): 1460–74.

Tong, W., Zhang, S. and Zhu, Y. (2013) “Trading on inside information: Evidence from the share-structure reform in China”, Journal of Banking & Finance, 37: 1422–36.

Fan, L,Z, Tian, S & Zhang C (2012), “Why are excess returns on China’s Treasury bonds so predictable? The role of the monetary system”, Journal of Banking & Finance, vol. 36, pp. 239-248.

Behr P., Norden, L. and Noth, F. (2013) “Financial constraints of private firms and bank lending behavior”, Journal of Banking & Finance, 37:3472–85.

Liang, Q., Xu, P. and Jiraporn, P. (2013) “Board characteristics and Chinese bank performance”, Journal of Banking & Finance, 37(8): 2953–68.

Jiang, C., Yao, S. and Feng, G. (2013) “Bank ownership, privatization, and performance: Evidence from a transition country”, Journal of Banking & Finance, 37: 3364–72.

Jia C. (2009) “The effect of ownership on the prudential behaviour of banks – The case of China”, Journal of Banking & Finance, 33: 77–87.

Ferri, G. (2009). “Are new tigers supplanting old mammoths in China’s banking system? Evidence from a sample of city commercial banks”, Journal of Banking & Finance, 33(1): 131–140.

Yuan, R. Xiao, J.Z. and Zou, H. (2008) “Mutual funds’ ownership and firm performance: Evidence from China”, Journal of Banking & Finance, 32(8): 1552–65.

Berger A.N., Hasan, I. and Zhou, M. (2010) “The effects of focus versus diversification on bank performance: Evidence from Chinese banks”, Journal of Banking & Finance, 34:1417–35.

Xu, Y. (2011) “Towards a more accurate measure of foreign bank entry and its impact on domestic banking performance: The case of China”, Journal of banking & finance, 35(4): 886–901.

Chong, T.T.L., Lu, L. and Ongena, S. (2013) “Does banking competition alleviate or worsen credit constraints faced by small- and medium- sized enterprises? Evidence from China”, Journal of Banking & Finance, 37(9): 3412–24.

Firth, M., Lin, P. & Wong, S.M.L. (2009) “Inside the black box: Bank credit allocation in China’s private sector”, Journal of Banking & Finance, 33: 1144–55.

Chen, Y., Liu, M. and Su, J. (2013) “Greasing the wheels of bank lending: Evidence from private firms in China”, Journal of Banking & Finance, 37: 2533–45.

Wang, S. (2011) “State Misallocation and housing prices: Theory and evidence from China”, American Economic Review, 101: 2081–107.

Berger, A.N., Hasan, I. and Zhou, M. (2009) “Bank ownership and efficiency in China: What will happen in the world’s largest nation?”, Journal of Banking and Finance, 33(1): 113–30.

Fu, X., and Heffernan, S. (2009) “The effects of reform on China’s bank structure and performance”, Journal of Banking & Finance, 33(1): 39–52.

Chen, Z., Du, J., Li, D. and Ouyang, R. (2013) “Does foreign institutional ownership increase return volatility? Evidence from China”, Journal of Banking and Finance, 37: 660–9.

Gul, F.A., Kim, J. and Qiu, A.A. (2010) “Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: Evidence from China”, Journal of Financial Economics, 95: 425–42.

Chen, G., Firth, M. and Xu, L. (2009) “Does the type of ownership control matter? Evidence from China’s listed companies”, Journal of Banking and Finance, 33: 171–81.

Jiang, G., Lee, C. M.C. and Yue, H. (2010) “Tunneling through intercorporate loans: The China experience”, Journal of Financial Economics, 98: 1–20.

Garcia-Herrero, A., Gavila, S. and Santabarbara, D. (2009) “What explains the low profitability of Chinese banks?”, Journal of Banking and Finance, 33:2080–92.

Sun, J., Harimaya, K. and Yamori, N. (2013) “Regional economic development, strategic investors, and efficiency of Chinese city commercial banks”, Journal of Banking and Finance, 37: 1602–11.

Chang, T.P., Hu J.L., Chou, R.Y. and Sun, L. (2012) “The sources of bank productivity growth in China during 2002–2009: A disaggregation view”, Journal of Banking and Finance, 36(7): 1997–2006.

Lin, X. and Zhang, Y. (2009) “Bank ownership reform and bank performance in China”, Journal of Banking and Finance, 33: 20–29.

Hasan, I., Wachtel, P. and Zhou, M. (2009) “Institutional development, financial deepening and economic growth: Evidence from China”, Journal of Banking and Finance, 33(1): 157–70.

Bo, H., Huang, Z. and Wang, C. (2011) “Understanding seasoned equity offerings of Chinese firms”, Journal of Banking and Finance, 35(5): 1143–57.

Song, Z., Storesletten, K., and Zilibotti, F. (2011) "Growing Like China", American Economic Review, 101(1): 196-233.

Chang, P.C., Jia, C. and Wang, Z. (2010) “Bank fund reallocation and economic growth: Evidence from China”, Journal of Banking and Finance, 34(11): 2753–66.

Lin, H. (2011) “Foreign bank entry and firms’ access to bank credit: Evidence from China”, Journal of Banking and Finance, 35(4): 1000–10.

Fan, L., Tian, S. and Zhang, C. (2012) “Why are excess returns on China’s Treasury bonds so predictable? The role of the monetary system”, Journal of Banking & Finance, 36: 239–248

The lecture slides and pdf version of handout are available on MyUni.

This course is delivered in three hour lectures and the tutorial contents will be covered in the third hour of each lecture.

The teaching is based on case studies by investigating a range of economic problems in China during the past three decades. The course content used to provide insight and identify options and solutions for the economic problems.

The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course of private study outside of your regular classes.

Students in this course are expected to attend all lectures/seminars, to finish all assignments in time, and to take tests and exams as required.

The following topics will be selected and covered in this course:

• Financial System in China (Overview of Financial Market)
• Financial Policies and Regulatory Bodies
• Exchange Rate Regime
• Foreign Exchange Control
• Interest Rate and Bond Market
• Commercial Banking (Risk Control)
• Commercial Banking (Asset and Liability business)
• Commercial Banking (Intermediary Business)
• Securities Market
• Insurance Market

Please check your student email and MyUni. frequently as all course-related announcements are communicated via email.

The assessments for this course include two asignments (15% each) and the final exam (a weight of 70%).

To gain a pass for this course, a mark of at least 50% must be obtained on the examination as well as a total of at least 50% overall. Students not achieving the minimum exam mark will be awarded no more than 49.

Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks are deducted in the assignment or final examination because of poor hand-writing.

Assignments 30%

The assignments will be either individual or group work as decided in the first lecture.
Due Date:
  9/01/2014 for first assignment 
16/01/2014 for second assignment

Final Exam 70%