CORPFIN 7045 - Wealth Management in China (M)
North Terrace Campus - Summer - 2014
General Course Information
Course Code CORPFIN 7045 Course Wealth Management in China (M) Coordinating Unit Business School Term Summer Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Assumed Knowledge CORPFIN 7005 Course Description This course would be of interest to anyone planning to conduct business within China. Participants will examine the various financial products available in China, overview the various exchanges, analyze the banking and insurance sectors plus learn about the regulatory environment in which wealth management for high net-worth clients is conducted. Issues also examined include analyzing risks involved 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.
Course Coordinator: Dr Kai DuName: Dr David K. Du
Location: Level 12, Nexus 10 Building
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesBy 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.
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s)
Required ResourcesPlease 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
Recommended ResourcesLu, 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
Online LearningThe lecture slides and pdf version of handout are available on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesThis 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 information below is provided as a guide to assist students in engaging appropriately with the course requirements.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.
Learning Activities SummaryThe 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
Specific Course RequirementsPlease check your student email and MyUni. frequently as all course-related announcements are communicated via email.
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment SummaryThe assessments for this course include two asignments (15% each) and the final exam (a weight of 70%).
Assessment Related RequirementsTo 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.
Assessment DetailAssignments 30%
The assignments will be either individual or group work as decided in the first lecture.
9/01/2014 for first assignment
16/01/2014 for second assignment
Final Exam 70%
The final examination is of three hours duration and it is held during the examination period. (Calculators are allowed for this close-book final exam and no dictionaries are allowed at the exam.)
Advice relating to the time and venue of the final examination will be posted on Access Adelaide in due course.
No information currently available.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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