Brochure HKTU Master Investment

1

Table of Contents

2 Message from the Dean

3 Message from the Academic Director

4 HKUST Business School

5 Program Objective

6 Target Students

7 Program Highlights

8 Admission Requirements and Course Expectations

10 Students Profile

12 Program Curriculum

14 Program Schedule

16 Faculty Profile

20 Course Descriptions

24 HKUST Business School Research Centers

26 HKUST Campus and Facilities

28 Application Information

2

Message from the Dean

The Hong Kong University of Science and Technology (HKUST) is a leading institution in the Asia Pacific Region that is known internationally for its high research standards. Within HKUST, the School of Business and Management has consistently been recognized by both the international media and academic journals.

The School was the first in the Asia Pacific Region to be accredited by both the AACSB International and the European Quality Improvement System, the two most important business school accrediting agencies in the world. Our MBA program was consecutively ranked

No. 1 in Asia in 2007, 2008 and 2009 by the Economist Intelligence Unit (EIU). Our joint Executive MBA program with the Kellogg School of Management was ranked No. 1 in the world in 2009 by Financial Times.

Besides recognition of degree programs, individual academic disciplines at our School have also gained prestigious recognition for their research accomplishments. For example, the School's Economics research was ranked number one in the Asia Pacific region by the Official Journal of the European Economics Association. HKUST's Finance research was also ranked first in the Asia Pacific region by the Arizona State University in 2008 while Information Systems was ranked second in Asia by the Decision Line Journal.

The HKUST Business School faculty members are recruited globally and several have previously taught at top business schools in the world. They are attracted to HKUST for its excellent research and teaching environment, and the opportunities to do research on various accounting, economic, finance, marketing and management issues in Asia. The quality of our faculty and their commitment to excellence are the key factors behind the spectacular rise of the School's

research reputation and the ranking of our MBA and EMBA programs.

The MSc Programs in Financial Analysis and Investment Management offered by the Business School are designed for individuals pursuing or planning to pursue a career in the finance industry or in the finance function of major corporations. Over the years, the two programs have attracted many strong applicants and produced many well-placed graduates. The curricula of the two programs have been recently changed to meet the specialized demands of the industry. They now offer four concentrations (Corporate Finance, Security Analysis, Asset Management, and Risk Management) to meet the demand of finance professionals in these fields.

If you are interested in advancing your career in the finance area, please read through this brochure and consider the many benefits our programs offer. We welcome your enquiry and participation.

Professor Leonard Cheng DeanSchool of Business and Management

3

The financial services industry has been and will continue to be one of the most important pillars of the Hong Kong economy. According to a Hong Kong government estimate, the financial services sector has been growing at 6% per year over the past decade. The sector employs more than 170,000 people, representing 5% of the working population and contributes well over 12% of the GDP. With the remarkable economic growth in Mainland China, there are even greater opportunities for the further development of Hong Kong's financial markets.

At the same time, the recent Financial crisis has presented a major challenge for the financial services industry. The financial sector has been shaped by the globalization, product innovation, technology, regulation, and consolidation among financial intermediaries. Competition is becoming more acute and professional standards are rising. For Hong Kong to maintain the status of an international financial center, there is an urgent need for rigorous educational programs to enhance the level of knowledge and professional services in banking, securities, insurance, fund management and other related sectors.

The Master of Science in Financial Analysis Program (MSc(FA)) and the Master of Science in Investment Management Program (MSc(IM)) at HKUST are designed to provide rigorous training for students

interested in professional careers in the finance industry. Since their inception in 1996 and 2002, the two programs have been widely recognized by finance professionals as premier academic programs. The curricula of the two programs have been designed to meet the growing and specialized demands of the industry. The two programs now offer four concentrations (Corporate Finance, Security Analysis, Asset Management, and Risk Management), and have added many new features to accommodate the needs of working executives.

The two programs are taught by our world-class business school faculty. Our faculty members are trained primarily at Ph.D. programs at top universities in North America or Europe, are all active researchers and many are well known leaders in their respective fields. We have experts in corporate finance, corporate reporting, investments, macro-economics, valuation, international finance, behavioral finance, derivatives and risk management. Our research in accounting, economics and finance are ranked number one in the Asia-Pacific. Besides engaging in top quality research, our faculty members also excel in teaching. Our faculty has won many university-teaching awards and is actively involved in executive teaching.

Besides having a group of active researchers, we have also recruited a number of industry practitioners

Message from the Academic Director

to teach electives in their areas of expertise. All these practitioners have extensive industry and teaching experience, and will bring real-world cases and their own experience to the classroom. Students are therefore assured that they learn both state-of-the art academic theories as well as the current market practices from our two master programs. Please read through this brochure and consider applying to the two programs. We look forward to meeting you and hope you can join our program.

Professor John WeiChair ProfessorDepartment of Finance

4

HKUST Business School

First business school in Asia to obtain AACSB accreditation.

The HKUST Business School was established in 1991 with the objective to be the premier business school in Asia. The School has a strong and internationally prominent faculty that has been trained primarily in PhD Programs at top universities in North America or Europe. They are active researchers and many are well-known leaders in their fields.

In 1999, HKUST became one of the first business schools in Asia to earn the prestigious accreditation of the AACSB International – The Association to Advance Collegiate Schools of Business. In July 2000, the School attained full accreditation from the European Quality Improvement System (EQUIS). The School has become one of the few institutions in the world to be accredited by both of these two major, internationally recognized, quality assurance processes for business schools.

5

Program Objective

Provide rigorous training to students for professional careers in the finance industry.

The Master of Science Program in Financial Analysis (MSc(FA)) and the Master of Science Program in Investment Management (MSc(IM)) are designed to provide rigorous training to students for professional careers in the finance industry. Since their inception in 1996 and 2002, the two programs have been widely recognized by finance professionals as premier academic programs. The curricula of the two programs have been constantly changed to meet the growing and specialized demands of the industry. Both programs begin with a solid foundation in accounting, economics, quantitative and computing skills, asset valuation and financial derivatives, which form the core subjects in the Chartered Financial Analysis (CFA) examinations curriculum. Students can then build on top of this broad knowledge base by choosing advanced courses and specialized electives that lead to concentration in Corporate Finance, Security Analysis, Asset Management or Risk Management.

6

Target Students

The two programs are for individuals pursuing or planning to pursue a successful career in the finance industry or in the finance function of major corporations. Although most participants should have experience in the field of finance, no formal finance training is assumed. The two programs are of particular relevance to those who are working in, or planning to work in the fields of:

Corporate finance, venture capital and

corporate restructuring

Commercial and retail banking

Investment management,

hedge funds and security analysis

Private banking, investment advisory,

and insurance companies

Derivatives trading, structured products and

risk management

Accounting firms, legal firms and regulatory

bodies requiring in-depth understanding of finance

7

Program Duration

The two programs are intended for part-time students and the minimum time required to complete the 30-credit course requirement is 18 months. The maximum time allowed for degree completion is five years.

Class Hours

Classes will be held on both weekday evenings (downtown) and Saturdays (campus). There are two different class schedule patterns for the core and required courses: Saturday only or evening plus Saturday afternoon. Students can choose the respective pattern to suit their work schedules.

Free Transfer

Students are allowed to transfer freely between the two programs before end of first year. They could therefore make the program choice after completing the core courses.

Program Highlights

Specialized Electives

To provide students with updated knowledge and development in the financial markets, many specialized electives are offered, including some taught by experienced industry practitioners.

Concentrations

The two programs offer four concentrations - Corporate Finance and Security Analysis in the MSc(FA) program, and Asset Management and Risk Management in the MSc(IM) program. Students could graduate with one concentration (30 credits) or two concentrations (38 credits).

CFA Exam

The curricula of the two programs assist students in preparing for the Chartered Financial Analysts (CFA) examinations. The course scheduling will also accommodate students in taking the CFA exams.

Program Size

Target a total of around 110 students for admission for intake 2010-11.

8

Admission Requirements and Course Expectations

Applicants for admission to both programs should have satisfied all of the following requirements:

A first degree

Applicants must possess a good bachelor degree (normally with Honors not lower than Second Class, Lower Division; or with an average grade of not lower than "B") from a recognized university or approved institution.

GMAT Requirement

Applicants are expected to achieve a satisfactory GMAT score. Applicants would be considered for exemption if one has more than 7 years of working experience in the finance or related industry. For those applicants who take the GMAT examination, they should use the code PRW-WT-01 for MSc(IM) and PRW-WT-72 for MSc(FA) in the registration form.

English Proficiency

For applicants who have attended educational institutions where the language of instruction was not English and whose first language is not English, a satisfactory score in the Test of English as Foreign Language (TOEFL) is required.

Work Experience

Work experience is strongly preferred. (At least one year full-time post qualification working experience.)

Program Fee

Both programs are charged on a credit basis. The fee for the 2009 intake is set at HKD 4800 per credit. The program fee for 2010 intake is under review and will be announced in Spring 2010. A limited number of Scholarships will be given to students with outstanding academic performance.

Methods of Instruction

The MSc programs in Financial Analysis and Investment Management employ a broad range of teaching methods such as lectures, discussions, seminars, case analysis, and individual and group projects. Faculty members choose the right mix of course materials and teaching methods for the best teaching results. The language of instruction is English.

Study Load and Duration

The MSc(FA) and MSc(IM) programs are offered on a part-time basis. The maximum study load for part-time students is 8 credits per semester. The program can be completed in 18 months, and the maximum time allowed for degree completion is five years, whether or not the student is in continuous registration.

Although the programs are on a part-time mode, students should be prepared for the intensive workload. Besides attending the classes regularly, students are expected to

do the required reading, complete homework assignments and case analysis, and take the examinations. On average, one hour of instruction requires two to three hours of preparation.

Credit Transfer and Course Substitution

Credit Transfer (i.e., course exemption without replacement) may be granted to students in recognition of postgraduate studies completed elsewhere. Students applying for credit transfer must produce evidence, such as transcript and course syllabus, to illustrate that a course is equivalent in content and level to another course taken elsewhere for which a satisfactory grade has been obtained. A maximum of 6 transfer credits can be granted for core, but not required or elective, courses required by the program.

Credits already used to satisfy the requirements of another academic qualification, e.g. MBA, MSc, or PhD, cannot be re-used for credit transfer.

Application for credit transfer must be made to the department during the first semester after admission. Late applications will not be considered.

Transfer credits granted will not be included in the calculation of grade averages. In addition, course approved for credit transfer will not appear on a student's transcript.

9

Course substitution (i.e., course exemption with replacement) may be granted if the student can produce evidence such as a transcript and course syllabus, that a course is equivalent in content and level to another course taken elsewhere, for which a satisfactory grade has been obtained. No credits will be given for the exempted course, and the student will be required to take an approved alternative course.

Graduation Requirement

The minimum number of credits needed to fulfill the degree requirements is 30. It normally takes 18 ~24 months to complete the course requirements. For those students claiming a second concentration, they are required to take 38 credits. To be considered for graduation, students have to complete the coursework and achieve at least a B average in the courses used to satisfy the program requirements within the maximum time allowed for program completion.

10

Students Profile 2009 Intake 2008 Intake Total No. of Students 118 117

Gender Male Female

UG study Local Overseas PRC# # starting from 09

Age (Years) 25th percentage 50th percentage 75th percentage 90th percentage

GMAT 25th percentage 50th percentage 75th percentage 90th percentage

Work Experience (Years) 25th percentage 50th percentage 75th percentage 90th percentage

Academic BackgroundBusiness Administration 38.8% 45.3% Engineering 16.4% 18.8% Law 1.7% 1.7% Arts & Social Science 23.3% 16.2% Science* 9.5% 2.6% Computer & IT** 10.3% 13.7% Medical Science -- 1.7% * Included Computer & IT for Intake 2007** Computer & IT was included in Science for Intake 2007

Work BackgroundFinance 57% 54.8% Sales & Marketing 1% 5.1% Information System 17.0% 12.0% General Management 16.0% 10.3% Others 3% 6.8% Engineering 3% 3.4% Accounting 3% 7.5%

66 (56%)

52 (44%)

63 (53%)

28

550 560

2931

620 600

32

34

660 640

36

39

12.5

10

7.5

4 5

7

11

15.1

700 660

43

70 (60%)

49 (42%) 47 (40%)

6 (5%)

41 (35%)

76 (65%)

11

“I recently went through the commencement ceremony where I was officially conferred with my degree of MSc in Financial Analysis; which is part of the MSc Finance curriculum offered by UST. For someone that just turned 50 a couple of months ago, it was indeed an occasion worth treasuring. What is of more value is the knowledge I have gained from my 18 months attending the course. The faculty is a good seasoned bunch of people who know how to challenge your thinking. Case studies are employed to good use. The most memorable one, as far as I am concerned, was on how one can price the value of movie sequels!!! (yup – and you do it with Black-Scholes equation no less. If you really want to know more, sign up!!). Yes there are courses where you wished you hadn’t bothered but on the whole, it’s a journey well worth travelling on. Good luck to all those who are about to embark on it. It’s well worth the time and money.”

Francis LimMScFA Graduate 2007

“Whenever the scene of the congregation ceremony appears in my mind, an unexplainable energetic spirit bursts out and it becomes a motivation for me to tackle the difficulties I am facing. Studying and working at the same time is never easy, especially if you are a part-time Masters degree student in UST. However, once you do it and look back, you will definitely know how why you did it. Not only have I learned solid and up-to-the market financial knowledge but more importantly, the capability of managing challenges. The course is tough but once you get through it, you will really grow up and gain more than you expected.”

Daphne ChungMScIM Graduate 2008

“I guess everyone likes me always comes up with a question when selecting a masters course for further study, “Which university/course potentially has the highest “return” in terms of the tuition fee I pay?” After finishing the course, I got the answers – top professors, smart students, excellent campus and facilities. This high return will be the best investment in your life!”

Markus NamMScIM Graduate 2008

2007 Intake126

33.3%23.8%

--16.7%26.2%

----

34.9%10.3%27.8%11.1%5.6%4.0%6.3%

550

29

590

31

640

36

5

8

12

16.3

690

43

76 (60%)

50 (40%)

38 (30%)

88 (70%)

12

Program CurriculumProgram Curriculum of the MSc in Financial Analysis

The curriculum is composed of 6 core courses, 4 required courses and 5 elective courses.

Course Titles Credits

Common Core Courses (6 courses, 12 credits)

Accounting Foundations 2 credits

Corporate Finance 2 credits

Derivatives Analysis 2 credits

Foundations of Economic Analysis 2 credits

Investment Analysis 2 credits

Statistics for Financial Analysis 2 credits

Required Courses ( 4 courses, 8 credits)

Advanced Topics in Financial Management 2 credits

Advanced Derivatives Analysis 2 credits

Fixed Income Analysis 2 credits

Corporate Financial Reporting I 2 credits

Program Curriculum of the MSc in Investment Management

The curriculum is composed of 6 core courses, 4 required courses and 5 elective courses.

Course Titles Credits

Common Core Courses (6 courses, 12 credits)

Accounting Foundations 2 credits






Required Courses ( 4 courses, 8 credits)



Financial Modeling 2 credits

Equity Investment Management 2 credits

Electives (5 courses, 10 credits, with at least 4 courses from the l ist of pre-selected electives to fulfill the concentration requirement)

13

Concentrations

Course TitlesMScFA in Corporate Finance

MScFA in Security Analysis

MScIM in Risk

Management

MScIM in Asset

Management

Advanced Derivatives Applications

Asset Securitization

Behavioral Finance

Corporate Finance Reporting II

Corporate Risk Management

Credit Risk Management

Equity Investment Management

Equity Valuation

Financial Markets in China

Fixed Income Derivatives

Foreign Exchange Market

Hedge Funds

International Financial Management

Investment and Finance in China

Marketing Financial Services

Mergers, Acquisitions & Restructuring

Operational Risk Management

Raising Debt in the Financial Markets

Real Estate Investment

Risk Management for Financial Institutions

Statistical Methods for Risk Management

Strategic Finance and Value Creation

Structured Products & Exotic Options

Trading in Equity Markets

Venture Capital & Private Equity

Sample Elective Courses

14

Sample Schedule for the MSc(FA)

Corporate Finance or Security Analysis Concentration(For students who intend to prepare for the CFA exam)*

1st year

Month 1(Aug)

Statistics for Financial Analysis2 credits

Month 2-3(Sept - Oct)

Accounting Foundations2 credits

Corporate Finance2 credits

Month 4-5(Nov - Dec)

Investment Analysis2 credits

Derivatives Analysis2 credits

Month 6 (Jan)

Foundations of Economic Analysis2 credits

Month 7-8(Feb - Mar)


Fixed-Income Analysis2 credits

Month 9(Apr)

Corporate Financial Reporting I2 credits

Month 10(May)

Review Course on Ethnics0 credits

Study for CFA*

Month 11-13(June - Aug)

Elective I2 credits

Year EndTotal credits for 1st year - 20

2nd

year


Advanced Topics in Financial Management

2 credits

Elective II2 credits


Elective III2 credits

Elective IV 2 credits

Month 18(Jan)

Elective V2 credits

Year End - CFA Level II Exam in JuneTotal credits for 2nd Year - 10

Total credits taken for the program - 30

*Students not taking the CFA exam can take an elective in May of the 1st year.

15

Sample Schedule for the MSc(IM)

Asset Management or Risk Management Concentration(For students who do not intend to prepare for the CFA exam)#

1st year

Month 1(Aug)

Statistics for Financial Analysis2 credits


Accounting Foundations2 credits

Corporate Finance2 credits


Investment Analysis2 credits

Derivatives Analysis2 credits

Month 6 (Jan)

Foundations of Economic Analysis2 credits

Month 7-8(Feb - Mar)


Fixed-Income Analysis2 credits

Month 9-10(Apr - May)

Elective I2 credits

Month 11-13(June - Aug)

Elective II2 credits

Year EndTotal credits for 1st year - 20

2nd

yearMonth 14-15(Sept - Oct)

Equity Investment Management2 credits

Elective III2 credits



Elective IV 2 credits

Month 18(Jan)

Elective V2 credits

Year EndTotal credits for 2nd Year - 10

Total credits taken for the program - 30

# Students who intend to prepare for the CFA exam can refer to the previous sample schedule by taking the suggested electives in the 1st and 2nd year.

16

Faculty Profile

Being recognized as one of the few institutions in the Asia Pacific Region that is known internationally for its high standing in the world of research, the School is blessed with a strong and internationally prominent faculty. Besides being a group of active researchers, many of them are well known leaders in their specific academic fields. The two master programs have also recruited a number of industry practitioners to teach electives in their areas of expertise. Students are therefore assured that they can learn both state-of-the art academic theories as well as the most current market practices from our two master programs. Following is a list of faculty members who taught in the MSc(FA) and MSc(IM) programs in 2009-10:

Mohammed APABHAI, PhD Oxford

Adjunct Professor, Department of FinanceResearch Interests include term structure modelling and valuation of yield curve derivative securities. Extensive professional experience in equity derivative strategy. Currently working in a renowned international bank.

Jonathan BATTEN, PhD Sydney

Adjunct Professor, Department of Finance Research interests include financial time-series; econometrics; policy issues related to bond market and financial market development; credit and financial risk management; corporate citizenship and governance by corporations. Has published articles in Applied Financial Economics, the Journal of Financial and Quantitative Finance, the Journal of International Financial Markets, and Institutions of Money.

Anthony T. CHAN, PhD Michigan

Adjunct Associate Professor, Department of Information and Systems ManagementResearch interests include time series analysis and stochastic control with applications in financial derivatives markets.

David COOK, PhD University of Wisconsin, Madison

Associate Professor, Department of EconomicsResearch interests include macroeconomics and monetary economics, economic growth and econometrics; has published articles in the Journal of Economic Dynamics and Control, the Journal of Monetary Economics and the Review of Economics and Statistics.

Fei DING, PhD Duke

Assistant Professor, Department of FinanceResearch interests include financial contracting theory in corporations; the money management industry (mutual funds and hedge funds); venture capital; markets microstructure.

Larry FRANKLIN, MBA, JD, Stanford University

Adjunct Professor, Department of FinanceSubstantial experience in the financial services industry as an investment banker, commercial banker and bank lawyer; extensive teaching experience in various premier universities.

17

Jie GAN, PhD Massachusetts Institute of Technology

Assistant Professor, Department of FinanceResearch interests include corporate finance, financial intermediation and real estate finance; has published articles in the Journal of Financial Economics and Review of Financial Studies.

Harold Ho Young KIM, PhD Princeton University

Adjunct Professor, Department of FinanceResearch interests include econometrics, finance and monetary theory. Currently Managing Director, Asia-Pacific Equity Driviatives of a renonwned International Bank.

Yue Kuen KWOK, PhD Brown

Associate Professor, Department of Mathematics Research interest includes financial mathematics. He has also published three books on Derivatives: Mathematical Methods of Financial Derivatives, Derivatives Markets in Hong Kong and Applied Complex Variables for Scientists and Engineers.

Veronique A. LAFON-VINAIS, MBA HEC, Masters in Law La Sorbonne

Adjunct Associate Professor, Department of FinanceExtensive experience in debt capital markets, including capital markets, loan syndication, asset sales, structured trade finance; formerly head of treasury origination in a leading commercial bank.

Michael LEMMON, PhD University of Utah

Adjunct Professor, Department of FinanceResearch interests include corporate finance; managerial compensation; capital structure; mergers and acquisitions; has published articles in the Journal of Finance, the Journal of Financial Economics, the Journal of Financial and Quantitative Analysis and the Review of Financial Studies.

Francois-Serge LHABITANT, PhD University of Lausanne

Visiting Professor, Department of FinanceResearch Interests include risk management and alternate investment. He has written several books on hedge funds; Hedge Funds: Myths and Limits; Hedge Funds: Quantitative Insights; The Handbook of Hedge Funds.

Peter MACKAY, PhD Purdue University

Associate Professor, Department of FinanceResearch interests include corporate finance; financial institutions and management; international finance; real options; risk management. Has published articles in the Journal of Financial and Quantitative Analysis, the Journal of Finance, and the Review of Financial Studies.

Steve MATSUNAGA, PhD University of Washington

Visiting Scholar, Department of Accounting Research interests include the design of managerial compensation contracts; has published articles in the Journal of the American Taxation Association, The Accounting Review, the Journal of Accounting, Auditing and Finance, the Journal of Applied Corporate Finance.

K. P. RAMASWAMY, PhD University of Kansas

Adjunct Professor, Department of AccountingResearch interests include management accounting in international context, financial accounting and mergers and acquisitions.

Ahron ROSENFELD, PhD University of Rochester

Visiting Scholar, Department of Finance Research interests include mergers and acquisitions, institutional investors, capital acquisitions and market microstructure; has published articles in Advances in Financial Economics, the Journal of Financial and Quantitative Analysis and the Journal of Accounting and Economics.

18

Ann RUTLEGDE, MBA University of Chicago

Adjunct Associate Professor, Department of FinanceResearch interests include capital structure and security value, the microstructure of risk-transfer markets, financial anthropology, and culture and credit behavior. She is the co-author of the book; The Analysis of Structured Securities: Precise Risk Measurement and Capital Allocation and is currently Principal of R&R Consulting in New York.

Mark SEASHOLES, PhD Harvard University

Associate Professor, Department of FinanceAssociate Director, MSc in Financial Analysis/ MSc in Investment ManagementResearch interests include financial economics and investors' behavior. Has published articles in the American Economic Review, the European Economic Review, the Journal of Empirical Finance, the Journal of Finance, the Journal of Financial Economics, the Pacific Basin Finance Journal, the Review of Finance and the Review of Financial Studies.

Mike Ka-Pui SO, PhD University of Hong Kong

Associate Professor, Department of Information and Systems ManagementResearch interests include nonlinear time series analysis, financial time series modeling, market volatility study; modeling the dynamic structure of economic data, and Value at Risk estimation in financial markets. Has published articles in Statistica Sinicia, the Journal of Forecasting and the Journal of Business and Economic Statistics.

V.S. SOMANATH, PhD New York University

Adjunct Professor, Department of Finance Research interests include international financial markets and international investments; has published articles in the Journal of International Financial Markets, Institutions and Money, the Journal of International Money and Finance, the Journal of International Business Studies; is a co-author of the book East-West Trade: Theory and Evidence.

Yiuman TSE, PhD Louisiana State University

Visiting Professor, Department of FinanceResearch interests include international financial markets and investments, market microstructure, time series analysis, futures and options and corporate finance. Has published articles in Journal of Futures Markets, Review of Futures Markets, Review of Quantitative Finance and Accounting, Review of Pacific Basin Financial Markets and Policies, Global Finance Journal, Advanced in Quantitative Analysis of Finance and Accounting, International Review of Economics & Finance, Journal of Banking and Finance and Journal of Financial Research.

19

John K. C. WEI, PhD University of Illinois, Urbana-Champaign

Chair Professor, Department of FinanceAcademic Director, MSc in Financial Analysis/ MSc in Investment ManagementAssociate Director, Centre for Fund Management Research interests include asset pricing, investments, options and futures, and corporate governance; published articles in the Accounting Review, the Journal of Banking and Finance, the Journal of Business, the Journal of Corporate Finance, the Journal of Empirical Finance, the Journal of Finance, the Journal of Financial Markets, the Journal of Financial and Quantitative Analysis and the Management Science.

Rui YAO, PhD University of North Carolina at Chapel Hill

Visiting Scholar, Department of FinanceResearch interest include portfolio choice, real estate finance, housing and mortgage. Has published articles in Journal of Money, Credit and Banking, Federal Reserve Bank of Philadelphia Business Review, Review of Financial Studies and Journal of Real Estate Finance and Economics.

Jerome YEN, PhD University of Arizona

Adjunct Professor, Department of FinanceResearch Interests include Internet applications and intelligent agents on the Internet, information economics and electronic commerce, decision support systems and decision agents, information retrieval and digital library, competition intelligence and business process reengineering, computer supported collaborative work and virtual organizations. Has published articles in the Journal of Management Information Systems, Kelo Economic Studies, the Journal of Mathematical Economics, and the International Review of Economic and Finance.

Chu ZHANG, PhD Chicago

Associate Professor, Department of FinanceResearch interests include theories and empirical studies of asset pricing; has published articles in the Journal of Banking and Finance, the Journal of Business, the Journal of Finance and the Journal of Financial Economics and the Review of Accounting Studies.

20

Course Descriptions

Core CoursesAccounting Foundations 2 credits

Introduction to accounting concepts, preparation and interpretation of financial statements.


Valuation of cash flow streams (PV of cash flow streams, annuities, and perpetuities); valuation of bonds; valuation of stocks using dividend discount model; capital budgeting decisions (NPV, IRR, payback); capital structure; limits to the use of debt (trade-off models); estimation of cost of debt and equity; WACC.


Basic characteristics of derivatives instruments such as forwards, futures, options, and swaps. Topics include pricing of futures and forward contracts, forward-spot basis risk, option strategies, put-call parity and introduction to the Black-Scholes model. The development and use of interest rate and currency swaps are also discussed.


An examination of some micro- and macro-economic concepts: competitive markets, profits in terms of cost structure and market power; national accounts and business cycles; money and inflation, economic growth, capital accumulation, technological advance and returns to capital and balance of payments.


An Introduction to fundamental concepts in investment analysis. The first part covers risk and return tradeoff, portfolio diversification, and modern portfolio theory including the capital asset pricing model and arbitrage pricing theory. The second part covers basic analytical tools used in analyzing fixed income securities. Topics include interest rates and yield-curve mathematics, duration analysis and convexity.


Applications of various statistical concepts to investment and financial decision including descriptive statistics, discrete and continuous probability distribution, sampling and estimation, hypothesis testing, correlation, and regression.

Required Courses

Advanced Topics in Financial Management 2 credits

Valuation of projects (advanced capital budgeting); estimating cost of capital; risk assessment of projects; decision tree analysis; real option valuation of projects; warrants and convertibles; leasing; dividend policy.


Advanced techniques in option pricing and derivatives risk management. Topics include the binomial model, risk-neutral valuation, extension of the Black-Scholes pricing model and option Greeks. The course will also include discussion and analysis of options on futures, interest rate options such as caps and floors, and some popular OTC products such as equity-linked notes and principal guaranteed funds.

21

Corporate Financial Reporting I 2 credits

Corporate financial reporting from the perspective of managers and financial statement users, including analysts. Topics include inventories, fixed assets, income taxes, liabilities, leases, off-balance-sheet debt, and dilutive securities.

Equity Investment Management 2 credits

The course covers the complete investment process from constructing investment objectives and policies to broad class asset allocation, monitoring, and performance measurement and attribution. Practical issues relating to investment style, active and passive management, stock market inefficiency will be discussed. Advanced techniques in portfolio construction such as the Black-Litterman model, single index and multi-factor are studied.


Includes techniques in fixed-income portfolio management and introduction of fixed-income derivatives. Topics include term-structure theories, yield-curve fitting techniques and yield curve trading strategies, portfolio performance evaluation, floating rate securities, forward rate agreements, bond and interest rate futures, and interest rate swaps.


This is a course about financial modeling. The goal is to make financial models that produce useful answers to economic questions. Selected topics which lend themselves to financial modeling will be covered, such as (but not limited to) loan amortization schedules; valuation and private equity; equity derivatives; mutual fund performance and style analysis; fixed income derivatives, and optimal portfolio selection.

Elective Courses

Advanced Derivatives Applications 2 credits

Practical applications of derivative pricing and hedging, focusing on equity-linked structures. The emphasis of the course will be on building intuition with regard to option pricing and hedging, using Excel-based pricing models and real world applications. A solid foundation in option pricing theory as provided by the prerequisite courses is assumed, as is familiarity with Excel and VBA.

Asset Securitization 2 credits

An introduction to the analysis of structured securities. Catalogues the world of cash- and derivative-based structured products. Reviews the essential methods used by rating agencies in appraising the credit of cash structures: ABS, MBS and CDOs. Hands-on exercise on the assignment of credit ratings.

Behavioral Finance 2 credits

This course examines how individuals' attitudes and behavior affect their financial decisions and financial markets. Topics include: review of psychological foundations, imperfect markets and limited arbitrage, market anomalies, and trading strategies.

Corporate Financial Reporting II 2 credits

Corporate financial reporting from the perspective of managers and financial statement users, including analysts. Topics include inter-corporate investments business combinations, multinational operations, pensions, and earnings quality.

Corporate Risk Management 2 credits

Practical and theoretical issues in risk management from the corporate end-user's perspective; benefits and optimal strategies of risk management; current cases which have been debated in the media.

Equity Valuation 2 credits

Basic valuation approaches including dividend discount model, free cash flows model, and valuation by multiples; measures of company performance and value added; valuation in special situations such as emerging markets, closely held companies, mergers, and divestitures.

Financial Markets in China 2 credits

The course is an overview of China's financial markets, their latest development, and future trends. Topics include: History of China Financial Markets, Structure of China Financial Markets, Regulation and Regulatory Bodies, Foreign Exchange and Monetary Policy, the Peoples Bank of China, Banking Industry, Securities and Bonds Market, Development of the Stock and Bond Market, Development of the Insurance Industry, Private Equity Funds, and the Real Estate Industry.

22

Fixed Income Derivatives 2 credits

This course teaches fixed-income derivatives and related topics. It begins with the interbank forward rate agreements and exchange traded interest rate and bond futures. It then covers the standard interest rate swaps followed by a variety of nonstandard swaps and swap derivatives. The next topic to be covered is fixed-income options and nonstandard floating rate notes that aim for managing interest rate risk. The last part of the course deals with fixed income instruments that have exposure in equity, commodity, inflation, currency, and so on. Both economic intuition and quantitative skills are emphasized.

Foreign Exchange Market 2 credits

This course covers foreign exchange cash and derivatives markets and instruments - spot, outright forwards, swaps, and futures. It also addresses arbitrage in currency and capital markets, and international parity conditions, dealings with forex risk in corporate finance and efficient portfolio construction, and creating and back-testing foreign exchange forecasting models.

Hedge Funds 2 credits

Alternative investments are the fastest growing sector of the financial industry, and probably the least understood, including by several market professionals. Although the range of sophistication in people associated with alternative investments varies substantially, it is more and more common to use them in investment strategies, either as direct investments or through funds of funds or structured products. The purpose of this course is to give participants a good understanding and workable knowledge of the techniques that should be part of the tool kit of anyone investing in, analyzing and/or advising private and institutional clients on the inclusion of alternative investments - and more specifically hedge funds - in their portfolios. Furthermore, this course will enable the participants to absorb the analytical arguments in the technical publications - the in-house research notes of financial institutions and in practitioner oriented journal - that deal with alternative investments and to apply them.

International Financial Management 2 credits

This course examines the institutional features of international financial markets, and focuses on international corporate finance. Broad issues to be examined include how corporations could seek financing in international financial markets, manage exchange rate risk and perform a cross-border capital budgeting project. Students will be required to analyze and discuss cases that are related to some of these issues.

Investment and Finance in China 2 credits

Foreign direct investment, China's banking system, trade and trade finance, infrastructure finance, raising funds from the stock markets.

Marketing Financial Services 2 credits

The aim of this course is to combine finance theory and marketing theory, more specifically marketing of professional services. Marketing of financial services is regarded as a challenge in today's rapidly changing finance markets. How to manage the marketing of financial services. This course penetrates into the relationship between the financial service providers and customers, using the viewpoint of finance theory, on one hand, and the viewpoint of marketing, on the other.

Mergers, Acquisitions and Restructuring 2 credits

Focuses on the design, analysis, and implementation of financial strategies aimed at repositioning and revitalizing companies. Corporate value creation by restructuring a company or by undergoing a business combination.

Operational Risk Management 2 credits

Provides the first discussion and up-to-date treatment of issues on operational risk including its definition and scope; the concerns by the financial institutions; how to access operational risk and how to integrate with other risks; and the best practices for the measurement and management of operational risk.

Raising Debt in the Financial Markets 2 credits

This course is designed to develop an in-depth understanding of the choices open to companies in terms of debt financing, and to provide students with an introduction to the domestic and international debt financial markets.

Real Estate Investment 2 credits

The goal of the course is to introduce to students recent developments in real estate markets, especially in Asia, and the basic knowledge for real estate investment. Students will learn basic concepts and skills for mortgage financing analysis and for real estate investment valuation and return analysis. Students will also be exposed to recent developments in real estate debt and equity markets.

23

Risk Management for Financial Institutions 2 credits

Brief overview of financial intermediaries and their functions. Measures of interest rate risk: periodic (re-pricing) gap, duration gap. Management of interest rate risk using appropriate composition of assets and liabilities, futures, options, caps, floors, collars, swaps. Market risk: value at risk measures. Management of credit risk, off-balance sheet risk, liquidity risk, capital adequacy. Deposit insurance. With selected case studies.

Statistical Methods for Risk Management 2 credits

This course introduces several risk management models designed to allow risk managers of financial institutions to measure and manage various sources of financial risk including market risk, interest rate risk, and default risk, among others. Emphasis is on the development of 'hands-on' experience which includes the calibration of models and discussion of the data issues faced in the application of these models. This course is intended for all students considering a career in quantitative risk management, whether in the insurance, banking, or non-financial sector.

Strategic Finance and Value Creation 2 credits

Key valuation techniques including discounted cash flow approach and valuation by multiples. Understanding of how firms manage and create value through restructuring assets, liabilities and organizational design.

Structured Products and Exotic Options 2 credits

This course will provide students with a basic understanding for the commonly traded financial derivatives and bonds instruments in the financial markets. Detailed explanations on the hedging, pricing and risk management methodologies will be included. Illustrative case studies of some real products will be provided.

Trading in Equity Markets 2 credits

This course aims to give participants an insight into finance in action, focusing on the equity market. The emphasis will be on real life market problems. Led by a market practitioner, it will look at, amongst other things, how a trading floor works and the different forces and factors that lead to a market behaving in the way that it does. Students will apply knowledge gained in other courses in practical situations with a distinction on where theory differs from practice, and an emphasis on the needs of market practitioners.

Venture Capital and Private Equity 2 credits

Topics include: (1) An overview of the venture capital and private equity markets in Asia; (2) Deal structuring; (3) Valuation techniques; (4) Due diligence and post-investment management; (5) Understanding the terms in term sheets; (6) Negotiating term sheets; (7) Going public, trade sale and other exit strategies. Real-world examples from throughout Asia will be used to illustrate these topics.

24

To support and extend research based in academic departments, the University has established a number of research institutes and centers. Such units advance the complementary research interests of a group of faculty and research staff, normally across traditional disciplinary boundaries.

Under the HKUST Business School, there are eleven research centers:

Center for Asian Financial Markets

The Center for Asian Financial Markets was formed to develop a data and knowledge base on Asian financial markets to facilitate research and the dissemination of knowledge and expertise. It also provides an academic interface with government and business. Activities include publications, provisions of expertise, development of new data and teaching materials, a bi-annual newsletter, a working paper series, seminars and public lectures, executive education, consulting services, and contract research.

Center for Asian Family Business and Entrepreneurship Studies

The Center for Asian Family Business and Entrepreneur Studies aims to become a center of excellence for knowledge and a leader in the understanding of the burgeoning family business sector in Asia through top-quality academic research and teaching on distinctive characteristics of Asian family business.

Center for Business Case Studies

The primary goal of the Center for Business Case Studies Center is to promote learning, writing and teaching of business cases within the HKUST Business School community, in the aim of improving the student satisfaction with their educational experience as well as enhancing the effective teaching for faculty members at HKUST.

Center for Business Strategy and Innovation

The Center for Business Strategy and Innovation aims to apply rigorous academic research of the MGMT department and the school to readily apparent needs of the business community and public institutions in Hong Kong and the region. By funding scholars to tackle critical business issues, we aim to have an impact on the practice of management in relation to innovation and strategy, and to make an important contribution to the economic development of Hong Kong and China.

Center for E-Commerce

The mission of the Center is to advance the theory and practice of conducting business over an electronic media with an aim to contribute to the economic development of Hong Kong by (a) enabling Electronic Commerce through frontier research in the integration of technology, organization, and market structure, (b) upgrading the manpower of Hong Kong through high-end executive and online programs on Electronic Commerce topics; and (c) collaborating closely with industrial partner to transfer and assist implementation of technologies and process innovations developed by the center.

Center for Economic Development

Formally established in 1995, the Center for Economic Development promotes strong research programs focusing on the study of economic development in the Asia-Pacific region. The Center also supports theoretical research on economic growth and transitional economies, and is active in public policy debates in Hong Kong.

HKUST Business School Research Centers

25

Center for Experimental Business Research

The Center for Experimental Business Research aims to promote the use of experimental methods in business research, expand experimental methodology through research and teaching, and leverage the strengths deriving from the new frontiers of knowledge.

Center for Fund Management

The Center for Fund Management (CFM) was established in October 2003. It aims to promote original and applied research on fund management, and to foster the development of the fund management industry in Hong Kong and the Chinese Mainland. The Center provides training and education programs to the fund industry and undertakes related research and consultancy services.

Center for Marketing and Supply Chain Management

The Center for Marketing and Supply Chain Management (originally Center for Marketing and Distribution), established in April 2005, with the generous support of the Fund Foundations Ltd, promotes high quality research on the interface of marketing and supply chain management, with a focus on the applications to China.

The mission of the Center is to influence the future business practices in marketing, supply chain management in or related to China. To this end, the activities will target people that are influencing the industry – policy setters, industry leaders, prominent academics, and people that will be making an influence – university students, budding researchers.

Hang Lung Center for Organizational Research

The Hang Lung Center for Organizational Research has as its objective the improvement of management practices, both of firms doing business in Greater China and also Chinese companies doing business globally. This will be achieved by conducting rigorous academic research in the related areas. Our vision extends to becoming the world’s leading center of excellence for knowledge on China-related organizational and management practices.

Shui On Center for China Business & Management

The Shui On Center for China Business and Management has been established by the School of Business and Management (SBM) of the HKUST with the sponsorship of Shui On Holdings Limited. The Center aims to promote and sustain academic-business collaboration through management development programs, industry forums, applied research, and case development projects related to China business and management. The ultimate goal is to advance and disseminate our knowledge and understanding of China business, and nurture top caliber China business managers as well as entrepreneurs with business interests in China.

26

HKUST Campus and Facilities

The HKUST campus is located on a hill overlooking beautiful Port Shelter - one of Hong Kong's most spectacular settings. The campus's lush landscaping and modern facilities contribute to a pleasant, high quality lifestyle.

University Library

The Library is an integral component of the academic programs, supporting University’s teaching and research in science, engineering, business and management, the humanities and social sciences. As of 2008, the Library’s book, periodical, and microform collections total approximately 720,000 volumes, plus 33,000 media materials. Its electronic collections include more than 300 electronic databases, and over 21,000 full-text e-journals.

In addition, the Library offers its users a learning environment rich in electronic information and services. In a sense the Library is always open in that its extensive array of electronic resources can be accessed from every corner of the campus, including all student and staff housing, twenty-four hours a day. Users can search the Library catalog in both English and Chinese using a telnet or Web interface. The Library Web server (http://library.ust.hk) has developed into a central information hub for access to Library information, services, and resources; instructional materials; pathfinders; subject guides and Internet sites.

Information Technology Support Center (ITSC)

The Information Technology Services Center develops and manages the computing and networking infrastructure of the University. It provides computing support to undergraduate and postgraduate teaching, and research applications in all Schools. In addition, the Center also looks after the central audio-visual needs of the University to facilitate teaching and learning. The Center operates powerful servers to provide campus-wide network services such as e-mail, network printing, World-Wide Web and electronic notice board. One important characteristics of the University's computing environment is its multimedia and Chinese-English bilingual capability. Increasingly, more network services will have these features. All personal computers and scientific workstations are connected to the campus network, providing desktop computing power as well as a window to a vast array of information and computing resources such as Library systems, administrative systems, academic software packages and audio/video broadcasting programs.

27

Laboratory and Computing Facilities of the School of Business and Management

The School of Business and Management maintains state-of-the-art computing resources and manages a number of computing laboratories, providing PC, Macintosh and Unix workstation facilities for teaching and research use.

Behavioral Laboratory

The laboratory includes a case study style classroom for business courses, a central control room with small break-out room which facilitates electronic interaction among the research rooms of the facility. It provides a state-of-the-art environment for teaching and research on human behavior.

Case Laboratories

Case study style classrooms have been designed for teaching and research purposes. Facilities in these laboratories include both advanced audio-visual as well as video-conferencing equipment.

PC Laboratory

This lab provides all necessary tools and software to help students master their skills in computer technologies and explore the Internet.

Sports and Recreation Facilities

The University provides various kinds of student amenities to enhance the quality of their campus life. Amenities for group and individual student activities include photographic dark rooms, music rooms, meeting rooms, workshops and office space. Common rooms and quiet rooms are available for leisure activities. The University has a good provision of sports and recreational activities. A large multi-purpose sports hall is designed for activities such as badminton, volley ball, handball, basketball, and indoor soccer, with other areas set aside for squash, table-tennis, fencing, dance, martial art, weight training and fitness exercises. Outdoor facilities include a 50-meter swimming pool, an Astroturf soccer pitch, an athletic track, outdoor ball courts and tennis courts.

28

Application Information

Phase Application Deadline Interview Period Admission ResultsI 1 Feb, 10 Feb – Mar, 10 Mid Mar, 10II 15 Mar, 10 Mar – Apr, 10 Mid Apr, 10

A non-refundable application fee of HK$150 will be charged for each application for 2010-11. All applications should be completed before Mar 15, 10. After the closing date, completed applications will be considered on a space available basis. Applicants are strongly recommended to lodge their applications online at http://www.bm.ust.hk/mfin.

A hardcopy of application forms and program brochures can be obtained by writing to:

Admission, Registration & Records OfficeThe Hong Kong University of Science and Technology Clear Water Bay, Kowloon, Hong KongTelephone no. : (852) 2623 1120Fax no. : (852) 2358 2463Email : [email protected] : http://www.ab.ust.hk/arr/adm/

For further enquiries about the programs, please contact:MSc(FA)/IM Program OfficeDepartment of FinanceSchool of Business and Management The Hong Kong University of Science and TechnologyClear Water BayKowloon, Hong KongTelephone no. : (852) 2358 8317 / (852) 2358 7673 / (852) 2358 7677Fax no. : (852) 2358 1749Email : [email protected]

PTC-

G13

258

P

rinte

d on

recy

cled

pap

er

Documents

Brochure HKTU Master Investment