Course Description - Chu Hai College of Higher Education

Course Code	Course Title	Course Credits	Prerequisites	Course Description
FNE101	PRINCIPLES OF FINANCE	3	Nil	The course provides participants with the essential concepts and techniques in the three basic financial management processes: capital budgeting, capital structure and working capital management. It includes basic concepts of financial management, tools in analysing financial statements, time value of money, valuation of bonds and stocks, analysis of risk and return, capital budgeting: net present value (NPV), internal rate of return (IRR), profitability index (PI), determination of cash flow, cost of capital: bonds, equity and preferred stocks, weighted average cost of capital (WACC), leverage and capital structure decisions.
FNE212	CORPORATE FINANCE	3	FNE101 PRINCIPLES OF FINANCE	This course provides a comprehensive overview and discussion in corporate finance. It develops students with an intermediate level of practical and quantitative competence in corporate finance, as an extension of the introductory course FNE 101 Principles of Finance.
FNE213	QUANTITATIVE FINANCE	3	FNE101 PRINCIPLES OF FINANCE	The course equips students with essential mathematical, statistical and numerical concepts and techniques in finance. It provides the essential mathematical finance background for studying in advanced finance courses. Topics include application of simulation in finance and risk analysis, descriptive analysis of financial data, probability and its applications in finance, statistical toolkit for financial analysis, application of Analysis of Variance in financial problems, correlation, regression analysis and its financial applications, smoothing techniques for financial time series data, time series analysis and index numbers, Wiener processes and Itô’s lemma.
FNE215	FINANCIAL PLANNING	3	FNE101 PRINCIPLES OF FINANCE	This course introduces the major principles of financial planning, and explores the essential components and process of financial planning. It aims to equip students to be a financial planner. Topics include the financial planning process and all the job knowledge requirements of Certified Financial Planners (CFP).
FNE234	BEHAVIOURAL FINANCE	3	FNE101 PRINCIPLES OF FINANCE	This course provides students with the knowledge to analyse how financial and investment decisions are made from the psychological perspective. It illustrates to students the various conceptual frameworks that financial decisions are made and the common bias among individual investors in making their investment decisions. Based on the frameworks, students would explain the various bias and the various “behavioural” issues among institutional investors. In addition, they may apply these means utilizing the psychological and institutional bias to beat the market.
FNE301	INVESTMENT PORTFOLIO MANAGEMENT	3	FNE101 PRINCIPLES OF FINANCE	This course is designed to help students understand the major portfolio and investment theories. Having completed the course, the students should have learnt the techniques and styles of investment portfolio management, and investment securities. The course includes portfolio theory, investment models: CAPM, APT, Index, Multifactor, and performance evaluation.
FNE306	INTERNATIONAL FINANCE	3	FNE101 PRINCIPLES OF FINANCE	In this course, students would acquire the competence in managing foreign currencies and associated financial matters in a multinational and commercial environment. The course includes international financial systems, foreign exchange regimes and markets, international parity conditions, international financial markets, derivatives and management of foreign exchange exposures, international capital structure, capital budgeting and cash management, and interest rate and currency swaps. Upon completion of the course, students would have the ability to analyze and devise solutions to the contemporary complex economic and financial issues in a multinational setting.
FNE308	DERIVATIVES	3	FNE101 PRINCIPLES OF FINANCE	This course moves beyond investment fundamentals to a rapidly growing segment of the financial markets called “derivatives”. Its focus is on the more leveraging and speculative aspects of investment. Upon completion of the course, students should comprehend the various speculative securities, such as, options, futures, forwards and swaps based on the various underlying assets such as bonds, commodities, currencies, and stocks, their speculative markets, and their applications. In particular, students would identify the roles of speculation, hedging and arbitrage, risk shifting, the relationship of the future/spot markets and be able to apply the principles to price and hedge derivatives products in a competitive market environment.
FNE311	FINANCIAL MARKETS AND INSTITUTION	3	ABA203 MONEY AND BANKING	This course familiarizes students with the structure, operations and dynamics of the financial systems and institutions. It understands and analyses the structure and general functions of financial markets and institutions. Upon completion of the course, the students would understand the general functions and structure of the main financial institutions, markets and instruments. They should also learn the basic risk management of the financial institutions.
FNE316	REAL ESTATE FINANCE	3	FNE101 PRINCIPLES OF FINANCE	The course provides an integrated theoretical and practical discussion in real estate finance and investments with particular focus in Hong Kong commercial property markets. It offers an overview of the role and pricing of real estate as an investment asset and the financial institutions and instruments of the real estate markets. It discusses the various activities of real estate financing, e.g., loan organization, processing, underwriting, and delivery to secondary market. Upon completion of the course, the students should acquire knowledge in mortgage lending, real estate mortgage conduits, and mortgage-backed securities.
FNE328	FINANCIAL ECONOMETRICS	3	FNE101 PRINCIPLES OF FINANCE	This course provides an overview of classical Linear Regression models, including extensions to logarithmic regressions and the use of dummy variables, treatments of variable (mis-)specification, the testing of linear restrictions, and models appropriate for heteroscedastic data. This course will also discuss the common problems arising in the practical use of econometrics, such as measurement error and the fitting of dynamic models, including autoregressive models with time series financial data.
FNE363	MANAGEMENT OF FINANCIAL INSTITUTIONS	3	FNE101 PRINCIPLES OF FINANCE	The course aims to provide background needed for effective management of financial institutions and to develop students’ ability on the formation of strategic management policies.
FNE364	MERGERS AND ACQUISITIONS	3	FNE101 PRINCIPLES OF FINANCE	This course will provide students with an understanding of the whys and how merging and acquisitions are taken place. Besides talking about the reasons underlying acquisition activity, empirical evidence and waves of merger activity, we will deal with several approaches to valuation and focus on several implementation issues along the way. At the end of the course, students will have been exposed to a wide variety of issues that are important to the field of acquisitions (e.g. legal and accounting issues, LBOs, share repurchases, takeover defense strategies) and will be in a position to better understand what investment bankers do.
FNE370	REGULATORY FRAMEWORK FOR FINANCIAL SERVICE INDUSTRY	3	FNE101 PRINCIPLES OF FINANCE	This course provides students with an understanding of the roles and importance of various regulatory bodies in the financial service industry in Hong Kong. It also provides students with an overview of the background and development of the regulatory framework for the financial service industry in Hong Kong and Mainland China. It enables students to identify and apply important legislation, rules, and guidelines governing the individuals, entities, and markets with respect to banking and financial practices under the regulatory framework in Hong Kong and Mainland China.
FNE371	FIXED INTEREST SECURITIES	3	FNE308 DERIVATIVES	This course provides an in-depth discussion in various fixed interest securities and an overview of different sectors of debt markets and a detailed analysis on diverse debt products. It examines the usage of interest rate and credit derivatives in the context of risk management.
FNE372	DEVELOPMENTS OF FINANCIAL MARKETS IN GREATER CHINA	3	FNE101 PRINCIPLES OF FINANCE	The course aims to develop students a comparative advantage in the knowledge and analytical thinking in the money markets and capital markets in the Greater China, focusing on the China stock market., to provide an overview of the developments of the financial markets in the Greater China and some of the latest issues and development and to cover some of the latest issues including RMB appreciation and full convertibility, banking system reform, hot money problems, regional financial centre and Hong Kong’s role, monetary policy issues etc.
FNE375	RISK MANAGEMENT AND INSURANCE	3	FNE101 PRINCIPLES OF FINANCE	This course provides students with essential concepts and techniques in risk management and insurance and with various practical real-life issues in risk management and insurance. Upon completion of the course, students will have a solid understanding the concepts of risk, and various techniques for risk management. They should have acquired broad risk management and insurance techniques when making financial decisions.
FNE385	INTERNATIONAL BANKING	3	FNE101 PRINCIPLES OF FINANCE	This course discusses the rationale for the expansion of international banking institutions and compares their strategies and operational developments. It provides an in-depth discussion in the managerial and regulatory problems encountered by international banks.
FNE390A/B	FINAL YEAR PROJECT I/II	6		According to staff-student collaborative interest.