BUSF-SHU 286-001

China Financial Markets (Spring 2023)

Subject to Change Statement
The syllabus and course schedule may be subject to change. Changes will be communicated
via email and in Brightspace. It is your responsibility to check email messages and course
announcements to stay current in the online phase of the course.

Instructor Information*
● Han-Shen Lin, Assistant Professor of Practice in Finance and MSQF Capstone Director
● Mob: +86-159-2166-8279
● Rm: S 848 (8Flr)
● Email: [email protected]
● Office Hours: Monday 1:30pm (By Appt)

Course Information*
● BUSF-SHU 286-001

● Date: 01/30/2023 - 05/12/2023

● Class Address: Rm E304, Qiantan Campus: 567 W Yangsi Rd

● Course Description -This course’s main objective is to provide students with a

practitioner’s framework for understanding and assessing developments in the China
financial system.

● Prerequisite: None, however introduction courses to accounting, finance, and economics

are helpful

● In-person class meeting days and times: Mon & Wed 8:00 – 9:30 am
○ Meeting ID: 923 7485 0050
○ Zoom Link: https://nyu.zoom.us/j/92374850050 (Only if approved in advance)

Course Overview and Learning Outcomes*

The course will start with an overview of the economic, governmental, and regulatory structures
that set the boundaries of how the China financial markets operate. Students will then examine
the financial system through the lens of the “Trilemma” also known as the Impossible Trinity.
There will be a deep dive into its three components: China’s capital controls, interest rate
management, and exchange rate system.

Within this framework, developments in China’s sectors of banking, securities, asset

management, insurance, PE/VC, fintech, and corporate finance practice will be covered.

Further commentary will be provided by C-suite level guest speakers who are leaders in their
respective fields. Previous speakers have come from Citi, Wells Fargo, CICC, Hang Seng
Bank, Visa, GE, AIG, Blackrock, Softbank, and other prominent global financial institutions.

Topical issues such as China’s property market challenges (e.g. Evergrande), the impact of
regulatory crackdowns on China industry valuations, data security, green financing, digital
currency, RMB internationalization, etc. will be explored.

Discussions will factor in global events and domestic economic planning measures to provide a
context of the financial markets as a means to help China achieve its broader development
goals. Time will also be allocated to help students think about future careers in finance.

Upon completion of this course, students will be able to:

● Identify the key policy-making and regulatory bodies shaping the China financial system
and explain their roles;
● Describe each component of the Trilemma (e.g. capital controls, FX policy, interest rate
management) and explain the economic trade-offs between them in a financial crisis
scenario;
● Classify the different banks in the Chinese banking system and articulate how the bank
and non-bank credit markets operate;
● Explain China’s economic growth model, how it is evolving, and how the excess of credit
growth can lead to market disruptions in key sectors such as real estate;
● Defend or challenge the likelihood of RMB internationalization success vis-à-vis China’s
current USD reliance on cross-border trade;
● Assess the financial strength of a corporate using the basics of financial statement
analysis
● Compare and contrast the different major financial services businesses (e.g. banking,
securities, insurance, PE/VC, fintech, asset management);
● Explain the influence of US-China relations on China’s financial system development
● Describe the rise of new developments affecting China’s financial system such as data
security, ESG/climate finance, digital currency, etc;
● Formulate a view of how China regulation rollouts affect capital flows to different sectors
and influence domestic and foreign views of China’s invest-ability.

Instruction Mode

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This course is based on in-person instruction. Students will be involved in group projects,
engage in active discussion, and be encouraged to share their views on the current financial
events of the day.

Course Requirements*
Class Participation
Students will be expected to actively participate in Q&A and share their views of the markets.

Assignment
Weekly group assignments may be given
Optional extra-credit assignments may be given.

Tests & Quizzes

There will be a mid-term and final exam. There may be an occasional spot quiz at the
beginning of class based on the previous class’ material.

Assigned Readings
Course slides will be the primary source of readings along with select current media articles
from the FT, Economist, WSJ, Caixin, etc. that will be read together in class.

Grading of Assignments
The grade for this course will be determined according to the following formula:
Assignments/Activities % of Final Grade
Class participation (Including Assignments
20%
and Project)
Mid-Term 40%
Final Exam 40%

 Class participation grades (20% of the total grade) will be based on 1) student participation
in class discussions with deductions from non-approved absences, and 2) class group
assignments/group project.

 After each exam (40% x 2), students will have an opportunity to review their physical exam
papers in the case of any errors after which the grades will be formally submitted through
the NYU system.

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Letter Grades
Letter grades for the entire course will be assigned as follows:

Letter Grade Points Percent

A 4.00 92.5% and higher

A- 3.67 90.0 – 92.49%

B+ 3.33 87.5% - 89.99%

B 3.00 82.5% - 87.49%

B- 2.67 80% - 82.49%

C+ or Below (Fail) 2.33 77.5% - 79.99%

Course Schedule
Topics and Assignments
Assignment
Week/Date Topic Reading
Due
Financial System Governance

1. Course Introduction
2. China’s economic development
policies Course
Jan 30, Feb 1
3. Central vs. local government Slides, Select
Feb 6, 8
tensions Current
4. Party and government Articles
5. Key regulatory bodies
6. Financial/economic intervention
tools

Basics of Corporate Credit

Course
1. Balance Sheet Slides, Select
Feb 13, 15
2. Income Statement Current
3. Cash Flow Statement
Articles
4. Case Study – Lin Widgets
Feb 20, 22 Banking System Overview

1. Financial concepts basics:

Leverage, basic accounting

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 terminology Course
2. The banking system Slides, Select
3. Case study: Evergrande and Current
the property market Articles

Trilemma – Capital Controls

Course
1. Rationale for having capital Slides, Select
controls Current
Feb 27, Mar 1 2. Understanding how China’s Articles
controls operate
3. Introduction to the Group
Projects

Trilemma – Exchange Rates

1. Exchange rate policy history Course

Mar 6, 8 2. RMB Internationalization and Slides, Select
the challenge of China’s Current
USD Reliance Articles

Trilemma – Interest Rate

1. Bank Lending Course

2. Non-bank lending Slides, Select
Mar 13 3. Case study: Asian Financial Current
Crisis Articles

Mar 15 Mid-term Review

Mar 20 Mid-Term Exam

Financial Sector Opening

1. Securities (Investment Banking) Course

2. Insurance Slides, Select
Mar 22, 27
3. Asset Management Current
Mar 29, Apr 3
4. Venture Capital / Private Equity Articles

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 Future of the Financial System

1. Cyber and Data Security

2. FinTech
Apr 10, 12 3. Case Study: Alibaba & the tech Course
regulatory crackdown Slides, Select
Current
Articles

Future of the Financial System

(continued)
Apr 17, 19
1. Green Financing
2. Global Financial Risks
3. Conclusions
Course
Slides, Select
Apr 24 Material Review for the Final Exam
Current
Articles
Course
Slides, Select
Apr 26 Final Exam
Current
Articles
Project Presentations / Career
May 8, 10
Paths

Tests and Quizzes

● Mid-Term: Mar 20
● Final: Apr 26

Course Materials
Required Textbooks & Materials
Course slides only. There will be occasional select current media articles to be read together in
class

Course Policies
Public Health Requirements and COVID-19 Student Code of Conduct
You are expected to comply with the COVID-19 Student Code of Conduct, including the
requirements for assigned seating, physical distancing and face coverings. Classrooms have
been configured accordingly. If you violate the COVID-19 Student Code of Conduct or fail to

Updated Jan 2023

follow your instructor's related warnings, you may be asked to leave the classroom and/or may
be subject to disciplinary action. You may review the Code on NYU Shanghai’s Community
Standards page.

Attendance and Tardiness

You are expected to attend all scheduled classes. If you are unable to attend a class, notify me
before that class. 

Absences and Grades

● 3-5 absences will lead to an F for your participation grade.

● 6-8 absences will lead to a one-letter reduction in your final grade.
● 9+ absences will lead to failure of the course.  

Absence Exceptions

Observance of Religious Holidays: You may miss class for the observance of religious holidays.
If you anticipate being absent because of religious observance, notify me in advance so we can
create a plan for making up missed work.  For more on this policy:
https://www.nyu.edu/about/policies-guidelines-compliance/policies-and-guidelines/university-
calendar-policy-on-religious-holidays.html

Competitions, Conferences, Presentations: You are permitted to be absent from classes to

participate in competitions, conferences, and presentations, either at home or out of town, as
approved by the Associate Provost for Academic Affairs. Review the Undergraduate Bulletin for
the conditions you must meet to obtain approval for this kind of absence.

Extended Illness: If you are ill and need to miss more than one week of classes, you must speak
to the Health & Wellness Office. Once Health and Wellness verifies the reasons for your
extended absence, I will consult with Academic Affairs and recommend the best course of
action. I will not look at doctors’ notes, both for your health privacy reasons and because I
cannot verify the authenticity or content of the notes.

Tardiness

Punctual arrival is mandatory for this class. Be on time. Please do not leave in the middle of
class unless it is an emergency.

Late Assignments
Assignments are due at the date and time indicated on this syllabus. The late penalty for
weekly group assignments is one-third of a letter grade per day (an A becomes an A-, etc.) All
other late assignments will earn an F.

Updated Jan 2023

Electronic Devices
Mobile Devices: You may not use mobile devices in class unless otherwise indicated.

Recording Class: To ensure the free and open discussion of ideas, you may not record
classroom lectures, discussions and/or activities without my advance written permission; any
such recording can be used solely for your own private use. If you have approved
accommodations from the Office of Disability Resources permitting the recording of class
meetings, you must present the accommodation letter to me in advance of any recording.
Distribution or sale of class recordings is prohibited without the written permission of the
instructor and other students who are recorded.

Instructional Technology
Email Communication: I will contact you regularly via the Brightspace system. You should
check for emails from me (reminders, logistics, updates, etc.) at the email address connected to
Brightspace. Please note that I will try to respond to your emails within 24 hours. Do not expect
immediate responses to emails sent late at night or on the weekends.

Assignment Notification: All assignments will be posted to our class Brightspace site. You are
responsible for looking at Brightspace after each class period to learn about the next homework
assignment.

Instructional Tools: We will be using Brightspace instructional technology resources in this

class. You can learn about the tools used in this class through the Student Digital Learning
Toolkit. You are responsible for communicating with me in a timely fashion if you are facing any
challenges using these tools.

Instructional Technology Assistance

If you need assistance with these tools, check the RITS website here or the RITS Toolkit here,
or you may email [email protected].

Academic Honesty/Plagiarism*
Carefully read NYU Shanghai’s Statement on Academic Integrity (in the Undergraduate
Bulletin). Breaches of academic integrity could result in failure of an assignment, failure of the
course, or other sanctions, as determined by the Academic Affairs office.

Disability Disclosure Statement*

NYU Shanghai is committed to providing equal educational opportunity and participation for
students with disabilities. It is NYU Shanghai’s policy that no student with a qualified disability
be excluded from participating in any NYU Shanghai program or activity, denied the benefits of
any NYU Shanghai program or activity, or otherwise subjected to discrimination with regard to
any NYU Shanghai program or activity. Any student who needs a reasonable accommodation
based on a qualified disability should register with the Moses Center for Student Accessibility for
assistance. Students can register online through the Moses Center and can contact the

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Academic Accommodations Team at [email protected] with
questions or for assistance.

Title IX Statement
Title IX of the Education Amendments of 1972 (Title IX) prohibits discrimination on the basis of
sex in educational programs. It protects victims of sexual or gender-based bullying and
harassment and survivors of gender-based violence. Protection from the discrimination on the
basis of sex includes protection from being retaliated against for filing a complaint of
discrimination or harassment. NYU Shanghai is committed to complying with Title IX and
enforcing University policies prohibiting discrimination on the basis of sex. Mary Signor,
Executive Director of the Office of Equal Opportunity, serves as the University’s Title IX
Coordinator. The Title IX Coordinator is a resource for any questions or concerns about sex
discrimination, sexual harassment, sexual violence, or sexual misconduct and is available to
discuss your rights and judicial options. University policies define prohibited conduct, provide
informal and formal procedures for filing a complaint and a prompt and equitable resolution of
complaints.

Links to the Title IX Policy and related documents:

● Sexual Misconduct, Relationship Violence, and Stalking Policy
● Procedures for Complaints Against Students
● Procedures for Complaints Against Employees
● Resource Guide for Students
● Resource Guide for Employees

Academic Resources
ARC Services
The Academic Resource Center (ARC) offers both individual, one-on-one tutoring as well as
group sessions in a variety of ways, in a variety of courses. You can log on to WCOnline to book
an appointment with a Global Writing & Speaking Fellow or a Learning Assistant (LA). The
Global Writing & Speaking Fellows conduct individual consultations on writing, speaking,
reading, and academic skills coaching. LAs provide both individual and small-group tutoring
support in over 30 STEM, Business, Economics, IMA/IMB, and Chinese Language classes. Visit
shanghai.nyu.edu/arc for more information about ARC services.

The Academic Resource Center (ARC) offers distance support for students who are enrolled in
NYU Shanghai courses during the mixed teaching mode. Students taking classes at another
campus/site should also take advantage of academic support resources available at those
locations. You can log on to WCOnline to book an appointment with a Global Writing &
Speaking Fellow or a Learning Assistant (LA). The Global Writing & Speaking Fellows conduct
individual, synchronous online consultations on writing, speaking, reading, and academic skills
coaching. LAs provide both individual and small-group online tutoring support in over 30 STEM,
Business, Economics, IMA/IMB, and Chinese Language classes. Visit shanghai.nyu.edu/arc for

Updated Jan 2023

more information about ARC services and refer to this site to learn more about how to access
online tutoring services.

Library Support

Library Services
The Library is available to support your research needs. They have access to over 20,000 print
resources, 2,000 DVDs, and 1,000 databases (including over a million e-books, as well as
streaming audio and video and image databases).

Librarians with expertise in your research topic are available to meet either in person or online
by appointment or by email to help you navigate the research process, from developing a
research question and formulating a research strategy, to selecting databases, requesting
materials, and citing your sources. Visit shanghai.nyu.edu/library for more information on:

● 24/7 access to e-books, e-journals, streaming media, and databases

● Booking one-on-one consultations for research help
● Asking the Library questions via chat or e-mail

Electronic Reserves
Students can access course readings using their NYU credentials for courses they currently
enrolled in at https://ares.library.nyu.edu/

Interlibrary Loan Service

For materials not available to you immediately, you can request scanned copies of a book
chapter or journal article through our Interlibrary Loan (ILL) service. If you don't know which
chapter you need, you can request a Table of Content through ILL.

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