Executive MS- HKUST (XGF1-GB)

The aim of the course is to provide students with a comprehensive overview of the financing and investment decisions made by firms. It covers capital budgeting, dividend policy, financing policy and managerial incentives. Topics include: Investing in risk free and risky projects Capital allocation and corporate strategy Taxes and financing choices Debt holder-equity holder conflicts Financial structure and corporate strategy Basics of valuation

This course introduces students to macroeconomic forces that affect global and Asian financial markets. Students will discuss various global macroeconomic concepts, the influences of global finance on long-run economic growth, and the structure/size of foreign exchange markets. This course will also cover recent developments in global/Asian financial markets, macroeconomics in a post-crises world, and exchange rates.

This module provides an introduction to modern asset pricing theory. We begin by briefly reviewing portfolio theory. We then move on to discussing current determinants of asset prices such as cash risk and liquidity. One of the module's goals is to apply asset pricing theories to investment decision-making. A second goal is to prepare students for upcoming modules. A third goal is to build a fundamental knowledge of fixed income and derivative products.

This course builds on the Foundations of Investments course to delve into more advanced topics. Major Topics Include: 1. Asset Allocation Across Securities 2. Asset Allocation Across Time

This is a course in derivatives markets: structure, valuation and strategies. It builds on the content of Modules 1 and 2. It combines theory, empirical findings and practical applications. The main applications include the equities markets, foreign exchange and commodities. The key derivatives instruments discussed include forwards, futures and options. Readings, cases and examples include the 2008 financial crisis, the 1987 Crash, LTCM 1998 Crisis, Covid 19 turmoil, Metallgesellschaft, etc. It has two parts: The first part deals with the structure of futures markets, pricing of futures contracts and hedging with such contracts. The second, and larger, part deals with options markets; strategies; pricing and position analysis. It includes topics like: Short Selling, Value-at-Risk, Exotic Options, Bitcoin Futures,Volatility Derivatives (VIX) and Trading Volatility. The course will consist of lectures, discussions and problem solving.

This course describes important debt instruments and markets in the US and China and develops analytical methods for pricing and hedging bonds and fixed income derivatives, and for bond portfolio management and performance evaluation.

This course focuses on the valuation of companies and the creation of shareholder value by looking at the interplay of corporate strategy and finance. The course exposes participants to valuation frameworks that can readily be applied to improve business and strategic decision-making.

A growing strand of research suggests that the standard economic paradigm - rational investors in an efficient market - does not adequately describe behavior in financial markets. Behavioral finance combines the latest findings of behavioral and cognitive psychological theory with conventional economics and finance to provide alternative explanations of financial market behavior. We will examine how psychology of decision making under conditions of risk and uncertainty affects the traditional paradigm, while paying attention to practical applications for portfolio and investment management.

This course provides an overview of China's financial markets, the reform of financial institutions and corporate risk management. Students will gain an understanding of the recent developments in financial services and corporate practices in China.

Starting with an overview of enterprise risk management, the course will present an integratedassessment framework. Other instructors in this Module will examine market, credit, and fintech risk. In addition to the basic framework, we’ll fill in some gaps: this course will cover other financial risks as well as cyber/operational and geopolitical risks. We will also study the interplay among these risks, the data and new tools needed to assess them, and policy implications. Because I’ll also cover climate and pandemic risk in separate sessions, I may move some topics around between Monday and Friday. Precisely because many of these critical risks are hard to measure and analyze, firms are putting both new and old resources – AI, data, people and money – to work to anticipate, manage and mitigate them. To address cybersecurity risks, for example, JP Morgan alone has 3000 employees and spends $600 million annually. Firms are only starting to grapple with climate- related and other risks. And startups are mushrooming to provide assessments to businesses. The course will outline frameworks for measuring, assessing and analyzing these risks, and for actions needed to meet them. We will examine case studies of cyber and geopolitical risks. We will assess the spillovers among these risks, and why an integrated (e.g. enterprise-wide or system-wide) approach helps to manage them. Finally, we will study whether and how the information in financial markets can both inform the assessment of these risks and potentially provide tools to transfer, insure against or hedge them.

This session will focus on the basics of blockchains and digital currency, as introduced by Bitcoin in 2009. We will investigate the origins of the blockchain technology and study how it works through the process of decentralized mining and governance. We will evaluate how well private digital currencies function as alternatives to sovereign fiat currency in the system of commercial payments. We will consider the roles played by forks and 51% attacks as part of a system of decentralized governance in which “code is law.”

This session provides an overview of credit derivatives: 1. Definitions of credit default swaps (CDS), total return swaps, basket swaps, credit link notes, credit spread options, and collateralized debt obligations (CDO) 2. Introduction to the pricing and hedging of credit instruments 3. Hazard, recovery rates and correlation across underlying credits 4. The intuition behind the pricing and hedging of tranches of CDO structures with examples 5. The effect of credit derivatives trading on the underlying firms 6. Sovereign and index CDS contracts

The Integrative Project is the capstone of the program. The objectives are to allow students to apply the financial skills assimilated throughout the program, to use critical thinking (in particular in the process of selecting a suitable topic), to apply effective communication and teamwork skills through the group work, and to showcase their presentation skills in communicating efficiently the result of their work.