BACHELOR OF FINANCE(BFin)
(See also General Regulations, pp. 1 to 16)
Bachelor of Cognitive Science (BCogSc)
Bachelor of Science in Actuarial Science (BSc[ActuarSc])
Bachelor of Social Sciences (BSocSc)
Master of Housing Management (MHousMan)
Master of Public Administration (MPA)
Master of Social Sciences (MSocSc)
BF 1 In these Regulations, and in the Syllabuses for the degree of BFin, unless the context otherwise requires ¡X
| 'Course' means a course of instruction leading to one paper in the Final Examination Part I, Part II and Part III, as defined in the syllabus; | |
| 'Paper' means one or more of the following tests: a theoretical examination paper, a practical examination paper, a project paper, an assessment of field practice, a thesis, and a dissertation, or other assignments as prescribed in the syllabus of the course leading to it; | |
| 'Double Course' means a course which extends over two semesters, is the equivalent of two courses, and leads to the equivalent of two papers in the Final Examination; | |
| 'Prerequisite' means a course which candidates must have completed successfully before being permitted to take the course in question. |
BF 2 To be eligible for admission to the degree of Bachelor of Finance candidates shall
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comply with the General Regulations; and |
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complete the curriculum in accordance with the regulations that follow. |
BF 3 The curriculum for the degree of Bachelor of Finance shall extend over not less than three academic years, and shall include the Final Examination Part I, Part II and Part III held annually, at the end of the first, second and third years respectively. Candidates shall select courses in accordance with Regulations BF 7 and BF 10 below, and such selection shall be subject to the approval of the Board of Studies of the School of Economics and Finance.
BF 4 In the Final Examination Part I, Part II and Part III, an assessment of the candidates' coursework during the year, including the completion of written assignments, quizzes, semester tests, and participation in fieldwork or laboratory work, as the case may be, shall be taken into account in determining their results in each paper. Except where prescribed in the syllabuses, the weight of coursework is set at 40% of the total marks.
BF 5 Subject to the conditions prescribed in the syllabuses, candidates may offer a project paper or dissertation in lieu of one or two written papers in the Final Examination.
BF 6 Candidates who are unable because of illness to be present for any paper or papers in the Final Examination Part I and Part II may apply for permission to present themselves for a supplementary examination to be held before the beginning of the first semester of the following academic year. Any such application shall be made on the form prescribed within two weeks of the first day of absence from any examination. Candidates who fail to satisfy the examiners in one or more papers in such a supplementary examination shall be considered under the provisions made in these regulations for failure at the first attempt at the examination, except that a further supplementary examination shall not be permitted.
BF 7 To complete the first year of the curriculum, candidates shall follow seven courses plus the compulsory English course and satisfy the examiners at the Final Examination Part I which shall consist of one paper in each of the courses selected, together with any fieldwork, oral and practical tests prescribed in the syllabus; provided that the candidates select each course subject to the special requirements listed with it.
BF 8 Candidates in the Final Examination Part I who have failed to satisfy the examiners in one paper only (other than the pre-requisite paper for compulsory courses to be taken in the second- and third-years of study) but have achieved in their opinion a sufficiently high standard in other papers to compensate for that failure, may be deemed to have satisfied the examiners but shall not be permitted to select a second- or third-year course for which the failed paper forms a prerequisite, unless they are given permission by the department concerned to sit a qualifying examination in the failed paper and satisfy the examiners in this.
BF 9
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Candidates in the Final Examination Part I | |
| (i) | who have failed to satisfy the examiners in any one paper and are not deemed to have satisfied the examiners under the provision of Regulation BF 8 above, or | |
| (ii) | who have failed to satisfy the examiners in two papers | |
| may be permitted to sit a Supplementary Final Examination Part I in the failed paper(s) held the same year in August/September. Candidates who fail in one or more papers at a Supplementary Final Examination Part I shall be required to repeat the whole first year of the curriculum. | ||
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Candidates in the Final Examination Part I who have failed to satisfy the examiners in three papers shall either be required to repeat the whole first year of the curriculum, or be recommended for discontinuation of studies under the provisions of General Regulation G 12. | |
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Candidates in the Final Examination Part I who have failed to satisfy the examiners in more than three papers shall be recommended for discontinuation of the studies under the provisions of General Regulation G 12. | |
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In no case may candidates proceed to the second year of the curriculum until they have satisfied the examiners under the provisions of BF 7, BF 8 or this Regulation. Candidates who have failed to satisfy the examiners in the Final Examination Part I after having repeated the first year of the curriculum shall be recommended for discontinuation of studies under the provisions of General Regulation G 12. | |
BF 10
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To complete the second and third years of the curriculum, candidates shall follow the equivalent of sixteen courses and satisfy the examiners at the Final Examination Parts II and III in the papers for the compulsory and other selected courses, half of the papers to be taken at Part II at the end of the second year and half at Part III at the end of the third year. |
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Selection of courses shall include five compulsory courses and at least seven and at most nine other courses in the BFin curriculum, and at least two courses offered by other curricula, and shall be subject to such other conditions as prescribed in the syllabuses. |
BF 11 Subject to the provisions under Regulation BF 5, the title of the dissertation shall be submitted for approval by the Head of the School not later than January 1 of the third year of the curriculum, and the dissertation must be presented by a date prescribed in the syllabuses. Candidates shall submit a statement that the dissertations represent their own work (or in the case of joint work, a statement countersigned by their co-worker(s), which shows the degree of their work) undertaken after registration in the course.
BF 12 An alphabetical list shall be published of candidates successful in the Final Examination Parts I and II, while the list of candidates successful in the whole of the Final Examination shall be published in five divisions: First Class Honours, Second Class Honours Division One, Second Class Honours Division Two, Third Class Honours, Pass. The standard attained in each of the three parts of the Final Examination shall be taken into account in determining the candidates' classifications.
BF 13
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Candidates who have failed to satisfy the examiners in the Final Examination Part II in one or two papers may be allowed to proceed to the third year of the curriculum and present themselves for re-examination either in the failed paper(s) or for examination in the same number of new papers, together with the papers of Part III of the Final Examination. |
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Candidates who have failed to satisfy the examiners in the Final Examination Part II in three or more papers shall either be required to repeat the second year of the curriculum, or be recommended for discontinuation of studies under the provisions of General Regulation G 12. |
BF 14
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Candidates in the Final Examination Part III who have failed to satisfy the examiners in three or more papers, including where appropriate the Part II papers examined or re-examined under the provisions of Regulation BF 13, shall be required either to repeat the courses for the failed papers and present themselves for re-examination in the papers when the examination is next held, or to repeat the final year of the curriculum and present themselves for re -examination in the whole of Part III of the Final Examination when the examination is next held. |
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Candidates who present themselves for re-examination may offer the same papers in which they have failed, or substitute other papers. |
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Candidates who present themselves for re-examination shall not be eligible for honours unless the Senate directs that they shall be so eligible because of exceptional circumstances. Candidates who fail to satisfy the examiners in this second attempt shall be recommended for discontinuation under the provisions of General Regulation G 12. If such candidates are not required by the Senate to discontinue their studies and are permitted to present themselves for a third time, they shall in no circumstances be eligible for honours. |
SYLLABUSES FOR THE DEGREE
OF
BACHELOR OF FINANCE
FIRST YEAR
| 1. | All first-year candidates must follow a total of eight courses of which 11001, 11002, 38001 and 38006 are compulsory. They are also required to satisfy a mathematics requirement by taking either 24118, 24119, 24303 or 24115, a statistics requirement by taking either 17101 or 17103 or 17106, and an English requirement by taking 77100. |
| 2. | The remaining courses may be selected from those offered by other programmes. Elective courses open to BFin candidates will be available for consultation at the School of Economics and Finance. |
| 3. | In addition to course 77100 which is a whole-year course, candidates may not take more than four courses in any semester. |
| 4. | Course 11001 is the prerequisite for all second- and third-year courses in the BFin curriculum. |
| 5. | The examination for each course, unless otherwise specified, is one two-hour written paper. The final grade will be determined by performance in the examination and an assessment of coursework. For the courses offered by the School of Economics and Finance, this weighting shall be in the ratio 60:40. For the courses offered by other departments, the weights of coursework will be determined by the department concerned. |
| 6. | Candidates interested in the accounting aspect of finance are recommended to take 12103. |
| 7. | Candidates interested in enhancing their knowledge in Mandarin are encouraged to take a course offered by the Department of Chinese. This course will not be counted as a course satisfying the course requirement stated in (1) above. |
| 8. | The material in the finance curriculum overlaps significantly with the required body of knowledge for the professional title of Chartered Financial Analyst (CFA ®), a study program offered by the Association for Investment Management and Research (AIMR). We would encourage students seeking this professional recognition to consult with members of the School for further guidance. |
Courses
1001. Introduction to economics I
An introduction to the basic concepts and principles of economics, with emphasis on the theoretical framework of choice theory, the nature of constraints, the measure of value, the laws of demand and productivity, and the implications for resource use and employment.
11002. Introduction to economics II
Further discussion of demand and supply and multi-market equilibrium, especially in an aggregative context. An introduction to money, banking, financial markets, and open economies.
38001. Financial statement analysis
Financial statement analysis comprises an introduction to the basic issues and concepts of financial accounting; the key financial statements; the mechanics of financial statement analysis and the limitations of using financial statement analysis.
38006. Introduction to finance
An introduction to finance with emphasis on the decisions and issues faced by the firm. The course will also cover the interrelated topics of individuals choosing between different investment alternatives, and the functioning of capital markets in equating the supply and demand of capital. Specific areas covered include: the basics of valuation using discounted cash flows, valuation of stocks and bonds, valuation and choosing between competing projects, risk and return, the cost of capital, and financial planning and forecasting. Throughout the course emphasis will be placed on the basic paradigms in finance including net present value, the capital asset pricing model and market efficiency.
17101. Elementary statistical methods
(Not available to candidates with a pass or above in Advanced Level Pure Mathematics.)
The discipline of statistics is concerned with situations involving uncertainty and variability. Variability greatly affects the interpretation of data. Thus statistics forms an important descriptive and analytical tool for economics. This elementary course, which is taught without any technical mathematics, presents many standard situations of data interpretation. The statistical tests for these situations are presented.
17103. Introductory statistics
(Candidates with Advanced Supplementary Level Mathematics and Statistics or courses 24118 or 24119 are eligible for this course, but may opt for course 17101.)
The discipline of statistics is concerned with situations involving uncertainty and variability. The interpretation of data is greatly affected when variability plays a role, as it usually does. Thus statistics forms an important descriptive and analytical tool for economics. Candidates with a mathematical background will find this course suitable, because the language of mathematics allows the subject of statistics to be presented with economy and clarity.
| Prerequisite: | Either Advanced Level Pure Mathematics or Advanced Supplementary Level Mathematics and Statistics or 24118 or 24119. |
17106. Probability and statistics
This course provides the basic foundations in probability and statistics for students in the Statistics Stream or BSc(ActuarSc), though the course is also suitable for mathematically-able students from other quantitative curricula. Probability theory underpins the study of statistics. The course aims firstly to develop skills in probabilistic analysis for problems involving randomness. Random variables and probability distributions are studied in depth. The concepts of statistics are then introduced, guided by motivating examples.
Prerequisite: Advanced Level Pure Mathematics or equivalent.
24118. Mathematics for social sciences: course I.1
(Compulsory for candidates without a pass or above in Advanced Supplementary Level Mathematics and Statistics or Advanced Level Pure Mathematics and not taking 24119 as an alternative. The Department of Mathematics does not allow candidates with a pass in Advanced Supplementary Level Mathematics and Statistics or Advanced Level Pure Mathematics to take this course. Such students are however eligible to take either 24119 or 24303).
The course is intended for students who wish to use mathematics as a tool and have done little mathematics since Form 5.
| Prerequisite: | Certificate of Education Level Mathematics (students with a pass or above in Advanced Supplementary Level Mathematics and Statistics or Advanced Level Pure Mathematics are not eligible). |
24119. Mathematics for social sciences: course I.2
The course introduces students to the basic techniques of mathematics. It is intended for students who wish to use mathematics as a tool. Students may not take both 24118 and 24119.
| Prerequisite: | Certificate of Education Level Mathematics, and with Certificate of Education Level Additional Mathematics or its equivalent. (Recommended for students with Advanced Supplementary Level Mathematics and Statistics. Students with a pass or above in Advanced Level Pure Mathematics are not eligible. Special cases will be considered by the Department.) |
24303. Mathematics for social sciences: course II
The course is specially designed for social sciences students. It will show how the methods of calculus and of linear mathematics may be applied in many fields of the social sciences. It covers: the real number system; limits and continuous functions; infinite series; vector spaces; matrices; differentials and partial derivatives of functions of several variables; extremum problems; double integrals; Gamma and Beta functions; difference equations; differential equations.
Prerequisites: 24118, 24119 or a pass in Advanced Level Pure Mathematics, or its equivalent.
24115. Calculus of one and several variables (double course)
To provide the students with the necessary background and basic tools for further studies in the physical and mathematical sciences.
Prerequisite: 24119 or a pass in Advanced Level Pure Mathematics, or its equivalent.
77100. English for academic communication
The course prepares students to respond effectively to the communicative demands of academic study in English. Through text-based activities in class and investigative project work related to language and disciplinary issues, the course develops abilities to analyse and evaluate extended texts, and to produce clear and coherent spoken and written discourses. It also emphasizes careful revision and editing of essays and project reports to ensure that lexical and grammatical choices are correct and appropriate. Assessment: 100% coursework.
SECOND AND THIRD YEARS
| 1. | With the exception of the compulsory courses, the courses listed will not necessarily be offered every year; from time to time, depending on the exigencies of staffing, additional courses may be offered. |
| 2. | Subject to the provisions of Regulation BF 10, candidates may select a minimum of twelve and a maximum of fourteen courses from the courses listed in these syllabuses. Five courses are compulsory: 11101, 11102, 11701 , 38802 and 38302 . Courses 11101 , 11102 and 38802 must be taken in the second year of the curriculum. |
| 3. | Elective courses open to BFin candidates will be available for consultation at the School of Economics and Finance. Advice is available on suitable combinations of second and third year courses, and candidates should note that less suitable combinations may not be permitted because of timetabling difficulties. |
| 4. | Each course leads to one written examination paper which will be two hours in length, or three hours in the case of a double course, unless otherwise specifed. The final grade for each course in the BFin curriculum will be determined by the candidates' performance in the Final Examination and an assessment of coursework, in the ratio 60:40. For the courses offered by other departments, the weighting of coursework will be determined by the departments concerned. |
| 5. | For some courses offered in the second semester, a course offered in the first semester is a prerequisite. In such cases, notwithstanding the provisions of Regulation BF 1, candidates will fulfil the prerequisite by having completed the course in question, on the understanding that they will take the examination at the end of the year. |
| 6. | Up to four courses offered under the syllabuses for the Master of Economics (MEcon) are open to candidates in the third year, subject to availability and the approval of the Head of the School. |
| 7. | Students who have completed course 17103 or 17106 in their first year are strongly recommended to read course 17202 or 17232 in the second year, in order to facilitate joint study of finance, economics and statistics. |
| 8. | Students who have completed course 12103 in their first year are strongly recommended to read course 12215 in the second year, in order to facilitate joint study of economics, finance and accounting. |
| 9. | The material in the finance curriculum overlaps significantly with the required body of knowledge for the professional title of Chartered Financial Analyst (CFA ®), a study programme offered by the Association for Investment Management and Research (AIMR). We would encourage students seeking this professional recognition to consult with members of the School for further guidance. |
Second-year Compulsory Courses
11101. Microeconomic theory
The laws of demand, supply, returns, and costs; price and output determination in different market situations; theory of factor pricing and income distribution; general equilibrium; interest and capital.
11102. Macroeconomic theory
Theories of income, employment, and the price level; analysis of secular growth and business fluctuations; introduction to monetary and fiscal policy.
38802. Investment analysis and portfolio management
Financial markets and financial securities; modern portfolio theory and asset pricing models; portfolio management and investment strategies; analysis of common stocks and bonds; introduction to derivatives securities.
Second- or Third-year Compulsory Course
11701. Introductory econometrics
This course is an elementary introduction to basic empirical techniques. Topics include: the linear regression model, model specification, properties of the linear model under alternative assumptions, dynamic and simultaneous equation models.
38302. Corporate finance
Theories and analysis of corporate valuation; cost of capital; capital structure; leasing; mergers and acquisitions; options; warrants; and convertible bonds.
Second- or Third-year Elective Courses
11201. Money and banking
Principles of money and banking; measurement of monetary aggregates; central banking and commercial banking; money supply process; instruments, effects and practices of monetary policy.
11203. Money and financial markets
Money and asset markets; financial sector equilibrium; level and term structure of interest rates; level and growth rate of money and financial assets; transmission of money shocks; theory of monetary policy; money, assets and growth.
11206. Capital theory
General equilibrium theory involving time under certainty conditions. The concepts of full information, stationary state, and steady state. Assumptions about information costs, transaction costs and complete markets. Fisher's separation theorem. Theory of consumption over discrete and continuous time. Theory of production over discrete and continuous time. Determination of general equilibrium over time. Intertemporal prices and interest rates.
(Note: Not open to students who have taken 38002.)
11602. Foreign trade and investment in China
This course has three parts: China trade, Chinese financial markets and direct investment in China. For China trade, topics include structure and trend of Chinese exports and imports, reform of Chinese foreign trade regime, foreign exchange rate regime, and China's role in the new trade environment under the World Trade Organization. For Chinese financial markets emphasis will be placed on Chinese financial institutions and markets including: the central banking system, the commercial banking industry, government and corporate debt markets, the stock market, and the foreign exchange market. For direct investment, theories of corporate finance and corporate governance will be used to analyze the behaviour of Chinese enterprises and the implications of such behaviour for foreign joint ventures. Government regulations will also be covered.
38102. Financial markets and institutions
General equilibrium of asset markets. The efficient market hypothesis and criticisms. Different assumptions about the behaviour of asset prices. Term structure of interest rates. General aspects of financial markets and their institutional structure. Topics to be covered under this head include: money markets, bond markets, equity (stock) market, forward markets, futures markets, forex markets, insurance markets and others.
38103. International banking
Nature of international banking. Comparison with domestic banking. Jurisdiction and regulatory framework: the Basle Concordat. Xeno-currency markets and international banking. International financing techniques: loan syndication, project finance, NIFs, RUFs etc. Risk exposure and control: sovereign risk, country risk, exchange risk, interest risk and credit risk. Management and strategies of international banks. 'National treatment' and financial centres.
38104. Management of commercial banks
This course introduces basic bank management techniques that include: asset and liability management, liquidity and reserve management, credit analysis, loan pricing and off-balance-sheet banking. Regulatory issues of commercial banks are also discussed.
38301. Derivative securities
Derivatives markets. Forwards, futures and options on commodities, equities, bonds and their economic roles; derivative investment and hedging strategies; pricing and hedging of derivatives securities.
38401. Empirical Finance
This course is a survey of the empirical research methods used most often in the analysis of financial markets and how they are applied to actual market data. Topics may include: tests of asset pricing and term structure models, efficient markets hypothesis, and event study methodology.
Prerequisite: 11701
38402. Mathematical finance
Arbitrage Theory. Properties of the portfolio frontier. Two fund separation. Valuation of state contingent claims. Derivative assets analysis. Multiperiod securities markets. Differential information.
Prerequisites: 24303 and 17328.
38501. Asian financial institutions
History and institutional aspects of financial markets in Hong Kong, Japan, Singapore, Taiwan and China. Regulatory policies and practices.
38804. Fixed income securities
Fixed-income securities markets; modelling of term structure of interest rates and valuation of fixed -income securities: fixed-income portfolio management methods; risk management with instruments such as interest rate swaps, options, futures, and caps.
38805. Real estate finance
Introduction to real estate economics, mortgage market, real estate auctions in Hong Kong, pre-sale market in Hong Kong, pricing of land and residential/commercial properties, mortgage-backed securities and mortgage company.
Third-year Elective Courses
11302. International finance
The interpretation of balance of payments and the adjustment to national and international equilibria, through changes in price levels, exchange rates, and national income. Other topics may include: foreign exchange market and Eurocurrency market, alternative exchange rate regimes, capital movements, exchange controls, and international monetary organizations.
11505. Project evaluation and financing
This course deals with the evaluation and financing of projects using microeconomic tools. It explores the normative aspects of projects, analyses public investment criteria and techniques for performing project appraisal, and employs basic financial analysis, including present value, cost of capital, cost -benefit ratio and internal rates of return calculations. Issues on infrastructure projects such as Build -Operate-Transfer projects, toll roads and bridges, the role of public-private sector participation, cost -recovery, international development banks and governmental guarantees will also be discussed.
38105. International financial management
The international corporation and its environment. Forex markets. Forex risk management. International working capital management. International treasury management. Foreign investment and capital budgeting. International financial markets: Euro-currency, Euro-bond, and Euro-notes markets.
38601. Reading course
This course consists of supervised reading and written work. Candidates may specialize in one topic under the supervision of a lecturer(s). Examples of topics are: the problem of social cost, investment in human capital, general equilibrium theory, empirical methods in international trade, international monetary relations, theories of saving and the East Asian economies, and current economic problems of Hong Kong.
An original project paper is required in lieu of a written paper in the Final Examination. It shall not exceed 10,000 words in length, and must be completed and presented not later than May 31 of the third year of the curriculum. Candidates shall submit a statement that the project papers represent their own work (or in the case of joint work, a statement countersigned by their co-worker(s), which shows the degree of their works) undertaken after the registration in the course.
38602. Dissertation (double course)
Candidates may write a dissertation under the supervision of a lecturer(s). Topics offered may vary from year to year, depending on the research interests of the staff. A satisfactory dissertation may be offered in lieu of two papers in the Final Examination.
Candidates must submit the titles and outlines of their dissertations for approval by the Head of the School not later than January 1 of the third year of the curriculum, and the dissertations, which should not exceed 20,000 words in length, shall be completed and presented not later than May 31 of that academic year.
38806. Risk management
This course introduces students to (1) the use of insurance in business and (2) corporate financial risk management. Topics include insurance contract analysis, life and health insurance, property and liability insurance, pensions, identifying and measuring financial risk, and managing financial risk using forwards, futures, swaps, options, and innovations such as caps, floors, collars, break and range forwards, and swaptions.
Prerequisites: 38802 and 38302 .
38807. Special topics in finance
This course covers current developments in finance. Possible topics include security trading and market making, venture analysis, financial contracting, investment strategies for local markets and other current issues in finance. The exact topic to be offered will be determined by instructors.
Prerequisites: 38802 and 38302 .
