Financial Theory

Perspectives from China

China is now the second largest economy in the world, with an increasingly efficient and open financial system. Many firms, agents and financial institutions have realized the potential in making money in China. Financial Theory: Perspectives from China serves as a timely textbook providing a unique introduction to economics theory, with a focus on money, banking and financial systems, through examples based mainly on China's financial practices. It contains up-to-date developments of theory and practices, as well as various interesting stories on China's financial system. Topics such as financial institutions, capital markets, debt securities markets, mutual fund markets, money markets, foreign exchange and financial derivative markets are discussed in depth. Financial theories are supplemented with illustrations from China's money supply mechanism and monetary policy system, China's financial regulatory and supervision system, as well as China's financial system and how it has liberalized and opened up to the rest of the world.

Readers will find detailed examinations of financial theories, exemplified and reinforced by the inclusion of different financial cases and phenomena, each intriguing in their own right. This book provides readers with a deeper understanding of China's financial practices, providing vital knowledge for investing in China and engaging businesses there. Undergraduate students in economics and finance and those keen on becoming a player in China's financial markets will no doubt find this volume useful and necessary.

Contents:

• Introduction:

  • Money, Monetary Systems, and Statistics
  • Financial System
  • Time Value of Money
  • Time Allocation of Resources: Whether to Save or Spend
  • Asset Selection and Risk Management of Lender–Savers
  • Financing Options for Borrower–Spenders

• Financial Institutions and Markets:

  • Financial Institutions in the Financial System
  • Commercial Bank Operations and Management
  • Long-Term Capital Markets
  • Short-Term Money Markets
  • Foreign Exchange Markets
  • Financial Derivatives Market

• Financial Controls:

  • Money Supply
  • Demand for Money
  • Interest Rate Levels and Interest Rate Structure
  • Price Levels: Inflation and Deflation
  • Exchange Rate Determination and the Exchange Rate System
  • Balance of Payments
  • National Income and Output Determination: The IS–LM Model
  • Monetary Policy Operations of the Central Bank

• Financial Development and Stability:

  • Financial Development and Financial Structure
  • Financial Deepening and Financial Liberalization
  • Financial Crises
  • Financial Regulation and Supervision

Readership: Undergraduate students in economics and finance as well as those interested in economics and investing in China.
Key Features:

• Explains key theories in the economics of money and financial systems in depth, keeping readers up-to-date with current developments in the field
• Financial theories exemplified and reinforced through interesting case studies with a China-centric focus
• Deepens the readers' understanding of China's financial practices, providing vital knowledge for investing in China and engaging businesses there