Course Description

Financial Statement Analysis

This module provides an introduction to the framework for financial statement analysis and financial statements (i.e. statement of financial  position, statement of financial performance and comprehensive income, and statement of cash flows). In order to understand financial statements, students will learn the key accounting concepts and policies that determine the ‘numbers’ presented in financial  statements. Students will also be introduced to basic financial analysis techniques, and specific areas of financial statements (e.g. inventory, receivables, PPE, income taxes, financing liabilities, off-balance sheet financing etc.), as well the need for analytical adjustments in analysing financial statements. Students will also be introduced to the differences in US and IFRS GAAP, and the convergence of accounting standards.

Quantitative Methods and Economic Analysis

This module provides the basics of quantitative analysis, probability theory and data analysis, with special reference to finance. Topics include the time value of money, theory of interest, probability theory, descriptive data analysis, decision trees, estimation and hypothesis testing, and simple statistical analysis such as correlation analysis, regression analysis and time series analysis. It also aims to equip students with the basic knowledge and skills to understand and analyse the economic issues. It is about understanding how the (economic) world works - the big picture and the fine detail - and how the actions of individuals, corporations, and governments play out at the microeconomic, macroeconomic and international economic levels.

Corporate Finance

This course aims to provide you with a basic understanding of corporate finance. You will be exposed to key financial concepts and tools commonly used by managers in making sound financial decisions. These include time value of money, risk-return trade-off analysis and cost of capital. The course also reviews the basic financial activities undertaken by firms to create value for their shareholders. These activities include investing, financing and the dividend policy.

Fixed Income and Derivative Analysis

This module focuses on the fixed-income markets and basic analytical tools used in analysing fixed-income securities. Features of fixed-income securities and credit rating will be covered in detail. Topics on basic analytical tools include interest rates and yield curve mathematics, duration analysis and convexity. Theories on the term structure of interest rates will also be discussed. Furthermore, this module introduces the concept of derivative pricing based on the idea of an arbitrage-free market. Basic derivative instruments such as forwards, futures, options and swaps will be covered. Valuation models for forwards and the Black-Scholes model for options will be studied. The difference between forwards and futures will also be discussed. In addition, the module contents will address hedging and the trading issues. From a hedging perspective, option Greeks, interest rate and currency swaps versus exposures, and forward-spot basis risks will be studied. For trading, arbitrage opportunities, violations of parities such as put-call parity and other options strategies will be reviewed.

Equity Analysis and Portfolio Management

This module covers basic techniques of the valuation and management of securities in a portfolio context. For valuation of stocks, models like discounted cash flow models, P/E multiples and alternative-pricing models will be covered. Implications of efficient market theory on fundamental and technical analysis will also be examined. Global and local equity market features will be incorporated to add depth to the module. For portfolio management, concepts of risk and return are analysed in the context of formal pricing models such as the Capital Asset Pricing Model and the Arbitrage Pricing Theory. Aspects of efficient market theory and anomalies are also considered. The concept of portfolio diversification and the construction of optimal portfolios such as mean-variance efficient portfolios are studied. The syllabus also includes international diversification and investments where currency risks and interest rate risks need to be evaluated.

Advanced Fixed-Income & Derivatives Analysis

This module is the continuation of Fixed-Income Analysis. This module focuses on fixed income derivatives and risk management. Valuation models on fixed-income securities with embedded options, such as callable and convertible bonds will be discussed in detail. Issues in securitisation, asset-backed securities and options pricing theory with applications to fixed-income market will be covered as well. This module also builds on and extends the coverage of the module Derivatives Analysis. The basic concepts will be reinforced with some degree of modelling skills including the building of simple PDEs using Ito’s lemma. Some ideas of extending Black-Scholes and other adaptations to different commodities and financial instruments will be provided. More sophisticated theories such as forwards versus futures pricing, and interest rate swaps versus interest rate futures will also be covered. Interest rate derivatives such as caps, floors, and others will be studied in addition to the analysis of the use of derivatives in risk management.

Advanced Equity Analysis & Portfolio Management

This course is the continuation of Equity Analysis. It aims to provide you with an in-depth understanding of valuation and equity analysis. The course will equip you with conceptual and analytical skills necessary to make valuations on any publicly traded firm and create a value-enhancement strategy for a firm’s management. This module also examines various advanced equity valuation models including contingent claim valuation using Option Pricing Model. This module also builds on and extends Portfolio Management and covers the complete investment process from constructing investment objectives and policies to broad class asset allocation, portfolio selection, revisions, monitoring, and performance measurement and attribution. Practical issues relating to investment management philosophy and style, and active and passive management will also be discussed. Advanced techniques in portfolio construction involving the use of single index, multi-factor and Arbitrage Pricing Theory models are studied.

Advanced Financial Statement Analysis

This module builds on and extends the coverage of the earlier module, Financial Statement Analysis. Advanced topics in financial statement analysis including corporate restructuring, accounting for inter-corporate investments, mergers and acquisitions, distress analysis, accounting for multinational operations and the use of financial statements as a tool for valuation and forecasting.

Advanced Quantitative and Economic Analysis

This module builds on and extends the coverage of the earlier modules of Economic Analysis and Quantitative Methods and Statistics. Some advanced topics on the analysis of economic data will be covered, including multiple regression model, time series and econometric modelling, nonparametric statistics, and multivariate analysis. Applications of these techniques in portfolio management, economic forecasting, term structure modelling, asset pricing theories performance measures and interest rate management will be examined.

Fund Management (Choose 4 out of 8)

1. Sustainable Finance & Alternative Investments
2. Structured Products
3. Hedge Funds
4. PE & VC Investing
5. Advanced Corporate Finance
6. Bank Risk Management
7. Investment Advisory and Wealth Management
8. Financial Modelling

Fintech (Choose 4 out of 5)

1. Financial Data Science
2. Machine Learning & Financial Application
3. Quantitative Trading Strategies
4. Fintech for Finance
5. Innovation in Digital Payment

Real Estate

1. Real Estate Investments & Finance
2. Analytics in Finance & Real Estate
3. Project & Infrastructure Financing
4. Real Estate Valuation & Taxation

The programme office reserves the right to amend as deem appropriate.