Finance in China

Course No: 02839080 Program: Future Leaders Project

Credits: 2 Course Type: Compulsory
Instructors: Laura Xiaolei Liu, Yu Zhang, Jiangmin Xu, Ji Shen, Ruichang Lu, Qi Liu
Prerequisite: Semester：2023 Spring

Brief Introduction to the Instructors：

Laura Xiaolei Liu is Boya Distinguished Professor of Peking University, and a Professor of Finance and
Accounting at Guanghua School of Management, Peking University. She is the Chair of the Department of
Finance, Guanghua School of Management, and Director of Blockchain Lab and Fintech Lab. She received her
PhD from University of Rochester. Her research interest is capital markets and empirical corporate finance.
Her work has been published in leading academic journals including Journal of Political Economy, Journal of
Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Monetary Economics, and
Management Science. In recent years her study has focused on China related topics. She received best paper
awards and research excellence award many times. Before joining Guanghua, Professor Liu taught at Hong
Kong University of Science and Technology and received tenure there.

Yu Zhang is an Associate Professor of Finance at Guanghua School of Management, Peking University.

He received a Ph.D. degree in economics from Princeton University after studying at the Department of
Economics and the Bendheim Center for Finance. His research is published on journals including the Review
of Financial Studies and the Review of Economics and Statistics, and focuses on the intersection of
macroeconomics and finance, with applications on housing, household finance, Fintech, and supply chain
finance.

Jiangmin Xu is an Associate Professor of Finance at the Guanghua School of Management, Peking

University. He received his BA in Economics with first class honors from Cambridge University in the United
Kingdom, and his Ph.D. in Economics from Princeton University in the United States. He has worked in
Goldman Sachs Research (London) and Watson Wyatt Investment Strategy (London) before. His main research
areas focus on Climate Economics, Climate Finance, and Financial Economics. His papers have been accepted
and published by top international economics and finance journals, including the Journal of Financial
Economics, and Journal of Econometrics. He has also won the Best Paper Award of the China International
Conference in Finance (CICF), and has repeatedly presented at the American Finance Association Annual
Meeting (AFA), the Western Finance Association Annual Meeting (WFA), the European Finance Association
Annual Meeting (EFA), and the China International Conference in Finance.

Ji Shen is an Associated Professor of Finance at the Guanghua School of Management. He received his
bachelor of science degree in physics at Fudan University and Ph.D. in finance at London School of Economics
and Political Science. His main research interests lie in the asset pricing model in frictional markets, corporate
finance, monetary policy and banking system and also the economics of digital era. His research has been
published both in major international academic journals including Management Science, Review of Financial
Studies, and leading Chinese journals.
 Ruichang Lu is an Associate Professor at Finance Department, Peking University Guanghua School of
Management. He received the Ph.D. degree in Finance from NUS Business School, National University of
Singapore. His research interest covers Banking, Financial Intermediaries, Corporate Finance. He received
WFA Cubist Systematic Strategies Ph.D. Candidate Award for Outstanding Research (2014) and Seventh
Annual Conference on Asia-Pacific Financial Markets (CAFM) best paper award. His research has appeared
in journals such as Management Science and Journal of Financial and Quantitative Analysis, and has been
profiled in media outlets such as the Institutional Investor.

Qi Liu is an Associate Professor of Finance at Guanghua School of Management of Peking University. He

obtained his Ph.D. in finance from the Wharton School of University of Pennsylvania. His research interests
are corporate finance, financial markets and behavioral finance. His papers have been accepted to publish by
journals, such as American Economic Review, Management Science, Review of Finance, American Economic
Journal: Microeconomics, and Journal of Corporate Finance, etc. His research works have won several awards,
including 2020 Ministry of Education Youth Achievement Award for Scientific Research (Social Science),
2020 Li Yining Research Prize, and 2018 Best Paper Award at China Financial Research Conference, etc. He
is also granted several teaching awards, such as 2021 Teaching Excellence Award of Peking University, 2020
Cao Fengqi Teaching Award, and 2016 Chia Tai Fellowship for Teaching Excellence.

Contact Information：
Laura Xiaolei Liu，86-10-62757296，Laura.Xiaolei.Liu@gsm.pku.edu.cn

TA Info：
何昊楠（Haonan He）
, hehn@stu.pku.edu.cn , Phone / Wechat: 13580382011

Office hour:
By request

Course Overview
In the 40 years of reform and opening up, finance in China has made great progress. Its development path,
organization, operation, risk accumulation and release patterns, formal and informal rules, interaction with the
real economy and other aspects are different from other economies and have obvious Chinese characteristics.
Most of the existing financial textbooks take the western market as the background, and there are obvious
deficiencies in interpreting the magnificent Chinese financial pattern and its tortuous and subtle historical
evolution. This course will describe the institutional background of Finance in China and sort out the historical
context of China's financial development. On this basis, based on academic research and guided by problems,
this course will reflect on the historical choice of the key nodes of financial reform and opening up, summarize
the experience and lessons of Chinese financial development, and visualize Chinese financial development
model, contribute to the in-depth combination of financial theory and Chinese practice, and predict the future
development direction of finance in China.
Course Objectives
After learning this course, students can grasp the historical process of the changes of Chinese financial
system, understand what is a "good financial system", and actively think about the key nodes of Chinese
financial development in the future and the correct choices we should make.

Detailed Course Plan

Class times Instructor Course content

st
1 Class Laura Xiaolei Liu Introduction
nd
2 Class Laura Xiaolei Liu Introduction
rd
3 Class Yu Zhang Real estate market
4th Class Yu Zhang Real estate market
th
5 Class Yu Zhang Real estate market
th
6 Class Ji Shen Equity market
th
7 Class Ji Shen Equity market
th
8 Class Ji Shen Equity market
th
9 Class Ruichang Lu Banking system
10th Class Ruichang Lu Banking system
th
11 Class Ruichang Lu Banking system
th
12 Class Jiangmin Xu VC/PE
th
13 Class Jiangmin Xu VC/PE
th
14 Class Qi Liu Financial Regulation
15th Class Qi Liu Financial Regulation

Final Exam:
The course has no exams. Instead, homework assigned in each module will be graded and contribute to the
course grade.

Teaching Methods
On-site teaching.

IT tools to be used in the classroom

Livestreams, videos, slideshows, emails, etc.

Textbooks
N/A
References & Readings
• Handbook of China’s Financial system-Edited by Marlene Amstad, Guofeng Sun and Wei Xiong
• The Finance We Love – Liu, Qiao
• Financial Markets and Institutions – Cao, Fengqi & Jia, Chunxin

Videos, CD-ROMs and other adjunct learning resources used

A number of video clips aiding the lectures and helping understanding will be shown in class

Rules students must follow

1. Abide by the academic ethics, prohibit deception and plagiarism.
2. If a student is absent from one course for more than one third of the semester, he/she cannot participate
in the final exam of this course, and the course score will be marked "0". Tardiness (e.g., being late or being
inattentive at class) will be noticed and penalized. Active participation (you speak up in class and what you say
actually contributes) will be rewarded. Assignments shall be submitted on time. No late assignments will be
accepted or graded. In addition, every group member shall contribute to group assignments. Free-riders, upon
peer group members’ report, will be penalized and obtain a lower grade from the final project (compensating
the other group members).

Course Assessment
Course participation: 10%
Homework : 90%