City University of Hong Kong

Course Syllabus

offered by Department of Economics and Finance

with effect from Semester A 2022/23

Part I Course Overview

Course Title: Financial Systems, Markets and Instruments

Course Code: EF5342

Course Duration: 1 semester

Credit Units: 3

Level: P5

Medium of
Instruction: English

Medium of
Assessment: English

Prerequisites:
(Course Code and Title) Nil

Precursors:
(Course Code and Title) Nil

Equivalent Courses:
(Course Code and Title) EF5364 Commercial Banking and Financial Systems

Exclusive Courses:
(Course Code and Title) Nil

Course Syllabus
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Nov 2021
 Part II Course Details

1. Abstract

This course aims to develop students’ ability to analyze the structure, operations and functions
of financial markets and institutions in Hong Kong and other leading financial centres.
Students will work on current issues and consolidate what they learn in the classroom. The
short essay, based on current issues, will put students’ discovery ability to the test. They will
make use of the information they obtain from the case study to analyse current issues.

2. Course Intended Learning Outcomes (CILOs)

(CILOs state what the student is expected to be able to do at the end of the course according to a given standard of
performance.)

No. CILOs Weighting Discovery-enriched

(if curriculum related
applicable) learning outcomes
(please tick where
appropriate)
A1 A2 A3
1. Provide economic rationales for the existence of 20% √ √
financial markets and institutions and analyze the key
functions of the various financial markets and
institutions;
2. Analyze the determinants of level of interest rates; 30% √ √ √
contrast the various theories of the term structure of
interest rates; discuss the tools, goals and targets of
monetary policy conducted by central banks;
3. Price the basic financial instruments in the various 30% √ √ √
financial markets and evaluate the principal risks
associated with them;
4. Discuss and debate the recent global trends in various 20% √ √
financial markets.
100%
A1: Attitude
Develop an attitude of discovery/innovation/creativity, as demonstrated by students possessing a strong
sense of curiosity, asking questions actively, challenging assumptions or engaging in inquiry together with
teachers.
A2: Ability
Develop the ability/skill needed to discover/innovate/create, as demonstrated by students possessing
critical thinking skills to assess ideas, acquiring research skills, synthesizing knowledge across disciplines
or applying academic knowledge to self-life problems.
A3: Accomplishments
Demonstrate accomplishment of discovery/innovation/creativity through producing /constructing creative
works/new artefacts, effective solutions to real-life problems or new processes.

Course Syllabus
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Nov 2021
 3. Teaching and Learning Activities (TLAs)
(TLAs designed to facilitate students’ achievement of the CILOs.)

TLA Brief Description CILO No. Hours/week

1 2 3 4 (if applicable)
Lecture Lectures, in-class group discussions of √ √ √ √ -

various financial articles published in

leading journals and newspapers.

Individual Essential practice questions from the √ √ √ √ -

assignments
textbook are selected by the lecturer to
provide students with an understanding of
the concepts and theories of specific
topics.
Group Students are expected to grasp the √ √ -
project
meaning of information by interpreting
and translating what they learn. Students
will find out more about issues such as the
relationship between interest rates/
exchange rate and the Hong Kong
economy, and the stock and property
markets, by analyzing the datasets and
market settings. Students are also
encouraged to retrieve data from database
such as Bloomberg and other online
resources. High marks will be given to
those who show team effort, creative
thinking and reasonable analysis.
Midterm test The mid-term test contains √ √ √ -

multiple-choice question and short essay

questions. The short essays, based on
current issues, will reveal students’ ability
to discover and make use of the case study
to carry out an analysis of the current
issues.

Course Syllabus
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Nov 2021
 4. Assessment Tasks/Activities (ATs)
(ATs are designed to assess how well the students achieve the CILOs.)

Assessment Tasks/Activities CILO No. Weighting Remarks

1 2 3 4
Continuous Assessment: 50 %
Course work (such as √ √ √ √ 50%
Individual
assignments/group
project/midterm test)
Examination: 50 % (duration: 2 hours, if applicable)
Final Examination √ √ √ √ 50 %

100%

Course Syllabus
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Nov 2021
5. Assessment Rubrics
(Grading of student achievements is based on student performance in assessment tasks/activities with the following rubrics.)

Applicable to students admitted in Semester A 2022/23 and thereafter

Assessment Task Criterion Excellent Good Marginal Failure

(A+, A, A-) (B+, B) (B-, C+, C) (F)
Course work (such as Demonstrate very strong Demonstrate good Demonstrate limited Demonstrate very little
Individual
assignments/group knowledge in the subject, knowledge in the subject, knowledge in the subject, knowledge in the subject,
project/midterm test) and a superior grasp of the and a good grasp of the and some idea of the and no awareness of the
critical issue and critical issue and critical issue and critical issue and
techniques. techniques. techniques. techniques.
Final Examination Demonstrate very strong Demonstrate good Demonstrate limited Demonstrate very little
knowledge in the subject, knowledge in the subject, knowledge in the subject, knowledge in the subject,
and a superior grasp of the and a good grasp of the and some idea of the and no awareness of the
critical issue and critical issue and critical issue and critical issue and
techniques. techniques. techniques. techniques.

Course Syllabus
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Nov 2021
 Applicable to students admitted before Semester A 2022/23

Assessment Task Criterion Excellent Good Fair Marginal Failure

(A+, A, A-) (B+, B, B-) (C+, C, C-) (D) (F)
Course work (such as Demonstrate very Demonstrate good Demonstrate Demonstrate limited Demonstrate very
Individual
assignments/group strong knowledge in knowledge in the adequate knowledge knowledge in the little knowledge in
project/midterm test) the subject, and a subject, and a good in the subject, and subject, and some the subject, and no
superior grasp of the grasp of the critical adequate grasp of the idea of the critical awareness of the
critical issue and issue and techniques. critical issue and issue and critical issue and
techniques. techniques. techniques. techniques.
Final Examination Demonstrate very Demonstrate good Demonstrate Demonstrate limited Demonstrate very
strong knowledge in knowledge in the adequate knowledge knowledge in the little knowledge in
the subject, and a subject, and a good in the subject, and subject, and some the subject, and no
superior grasp of the grasp of the critical adequate grasp of the idea of the critical awareness of the
critical issue and issue and techniques. critical issue and issue and critical issue and
techniques. techniques. techniques. techniques.

Course Syllabus
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Nov 2021
Part III Other Information (more details can be provided separately in the teaching plan)

1. Keyword Syllabus
(An indication of the key topics of the course.)

Financial intermediation.
Financial institutions and markets.
Money markets and capital markets.
Primary and secondary markets.
Prices, yields and risk analysis.
Commercial banks, investment banks, central banks.
Security firms, venture capitalists, insurance companies.
Transaction costs, risk sharing and asymmetric information.
Open market operation, discount rate and reserve requirements.
Clearing and settlement.
Asset securitization.

2. Reading List

2.1 Compulsory Readings

(Compulsory readings can include books, book chapters, or journal/magazine articles. There are also collections of
e-books, e-journals available from the CityU Library.)

Textbook

1. Mishkin, F.S. and S.G. Eakins, Financial Markets and Institutions, current edition,
Pearson, Addison-Wesley.

2.2 Additional Readings

(Additional references for students to learn to expand their knowledge about the subject.)

1. Y.K. Ho, R.H. Scott and K.A. Wong (eds), The Hong Kong Financial System, current
edition, Oxford University Press.
2. Santomero, A.M. and D.F. Babbel, Financial Markets, Instruments and Institutions,
current edition, McGraw Hill.
3. Saunders and M.M. Cornett, Financial Markets and Institutions, current edition,
McGraw-Hill.
4. Articles published by central banks, such as Federal Reserves, Bank of England, Bank
of Japan, Hong Kong Monetary Authority, Singapore Monetary Authority, People
Bank of China and others.
5. Articles published by international financial institutions, such as World Bank,
International Monetary Funds, Asian Development Bank, OECD, Bank for
International Settlements and others.
6. Articles published by relevant financial organizations in HKSAR, such as Securities
and Futures Commission, Hong Kong Exchange and Clearing, HKSAR Office of the
Commissioner of Insurance, and others.

Course Syllabus 7
Nov 2021
 7. Lecture notes, newspaper clippings and articles
8. http://www.adb.org
9. http://www.worldbank.org
10. http://www.imf.org
11. http://www.info.gov.hk/hkma
12. http://www.sehk.com.hk

Course Syllabus 8
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