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
Dean
School of Business and Management

Message from the Academic Director
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
3
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 to teach electives in their areas of
at top universities in North expertise. All these practitioners
America or Europe, are all active have extensive industry and teaching
researchers and many are well experience, and will bring real-world
known leaders in their respective cases and their own experience
fields. We have experts in corporate to the classroom. Students are
finance, corporate reporting, therefore assured that they learn
investments, macro-economics, both state-of-the art academic
valuation, international finance, theories as well as the current
behavioral finance, derivatives and market practices from our two
risk management. Our research master programs.
in accounting, economics and Please read through this brochure
finance are ranked number one in and consider applying to the two
the Asia-Pacific. Besides engaging programs. We look forward to
in top quality research, our faculty meeting you and hope you can join
members also excel in teaching. Our our program.
faculty has won many university-
teaching awards and is actively
involved in executive teaching.
Besides having a group of active Professor John Wei
researchers, we have also recruited Chair Professor
a number of industry practitioners Department 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 Corporate finance,
successful career in the finance venture capital and Investment
industry or in the finance function of corporate restructuring management,
major corporations. Although most hedge funds and
participants should have experience security analysis
in the field of finance, no formal
finance training is assumed. The two
programs are of particular relevance Commercial and
to those who are working in, or retail banking
planning to work in the fields of:
Private banking,
investment advisory,
Derivatives trading, and insurance
structured products and companies
risk management

Accounting firms, legal

firms and regulatory
bodies requiring in-depth
understanding of finance

Program Highlights
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.
7
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
66 (56%) 76 (65%)
Male
Female 52 (44%) 41 (35%)

UG study 49 (42%) 47 (40%)

Local
Overseas 6 (5%)
PRC#
# 63 (53%) 70 (60%)
starting from 09
Age (Years)
25th percentage 28 29
50th percentage 31 32
75th percentage 34 36
90th percentage 39 43

GMAT 700 660

25th percentage 660 640
50th percentage
75th percentage
90th percentage 550 560
620 600
Work Experience (Years)
4 5
25th percentage
50th percentage 7.5 7
75th percentage 10 11
90th percentage 12.5 15.1

Academic Background
Business 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 Background
Finance 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%
 11

“I recently went through the commencement

2007 Intake ceremony where I was officially conferred
with my degree of MSc in Financial Analysis;
126
which is part of the MSc Finance curriculum
offered by UST. For someone that just turned
88 (70%) 50 a couple of months ago, it was indeed an
occasion worth treasuring. What is of more
38 (30%) value is the knowledge I have gained from my
18 months attending the course. The faculty
50 (40%) 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,
76 (60%) 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
29 know more, sign up!!). Yes there are courses
where you wished you hadn’t bothered but on
31
the whole, it’s a journey well worth travelling
36 on. Good luck to all those who are about to
43 embark on it. It’s well worth the time and
money.”
690 Francis Lim
640 MScFA Graduate 2007

“Whenever the scene of the congregation

550 ceremony appears in my mind, an
590 unexplainable energetic spirit bursts out and
it becomes a motivation for me to tackle the
5 difficulties I am facing. Studying and working
8 at the same time is never easy, especially if
you are a part-time Masters degree student
12 in UST. However, once you do it and look
16.3 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
33.3% challenges. The course is tough but once you
23.8% get through it, you will really grow up and gain
-- more than you expected.”
16.7% Daphne Chung
26.2% MScIM 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
34.9% finishing the course, I got the answers – top
10.3% professors, smart students, excellent campus
and facilities. This high return will be the best
27.8%
investment in your life!”
11.1%
5.6% Markus Nam
MScIM Graduate 2008
4.0%
6.3%
12

Program Curriculum
Program 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

Electives
(5 courses, 10 credits,
with at least 4 courses
Program Curriculum of the MSc in Investment Management from the list of pre-
selected electives to
The curriculum is composed of 6 core courses, 4 required courses and 5 elective courses.
fulfill the concentration
requirement)
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 Derivatives Analysis 2 credits

Fixed Income Analysis 2 credits

Financial Modeling 2 credits

Equity Investment Management 2 credits

 13

Sample Elective Courses

Concentrations

MScFA in MScFA in MScIM in MScIM in

Course Titles Corporate Security Risk Asset
Finance Analysis Management 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

14

Sample Schedule for the MSc(FA)

Corporate Finance or Security Analysis Concentration

(For students who intend to prepare for the CFA exam)*

Month 1 Statistics for Financial Analysis

(Aug) 2 credits

Month 2-3 Accounting Foundations Corporate Finance

(Sept - Oct) 2 credits 2 credits

Month 4-5 Investment Analysis Derivatives Analysis

(Nov - Dec) 2 credits 2 credits

Month 6 Foundations of Economic Analysis

(Jan) 2 credits
1st year

Month 7-8 Advanced Derivatives Analysis Fixed-Income Analysis

(Feb - Mar) 2 credits 2 credits

Month 9 Corporate Financial Reporting I

(Apr) 2 credits

Month 10 Review Course on Ethnics Study for CFA*

(May) 0 credits

Month 11-13 Elective I Year End

(June - Aug) 2 credits Total credits for 1st year - 20

Month 14-15 Advanced Topics in Elective II

(Sept - Oct) Financial Management 2 credits
2 credits
2nd year

Month 16-17 Elective III Elective IV

(Nov - Dec) 2 credits 2 credits

Month 18 Elective V
(Jan) 2 credits

Year End - CFA Level II Exam in June

Total 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)#

Month 1 Statistics for Financial Analysis

(Aug) 2 credits

Month 2-3 Accounting Foundations Corporate Finance

(Sept - Oct) 2 credits 2 credits

Month 4-5 Investment Analysis Derivatives Analysis

(Nov - Dec) 2 credits 2 credits
1st year

Month 6 Foundations of Economic Analysis

(Jan) 2 credits

Month 7-8 Advanced Derivatives Analysis Fixed-Income Analysis

(Feb - Mar) 2 credits 2 credits

Month 9-10 Elective I

(Apr - May) 2 credits

Month 11-13 Elective II Year End

(June - Aug) 2 credits Total credits for 1st year - 20

Month 14-15 Equity Investment Management Elective III

(Sept - Oct) 2 credits 2 credits
2nd year

Month 16-17 Financial Modeling Elective IV

(Nov - Dec) 2 credits 2 credits

Month 18 Elective V
(Jan) 2 credits

Year End
Total 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 Anthony T. CHAN, PhD Michigan
Asia Pacific Region that is known internationally for
its high standing in the world of research, the School Adjunct Associate Professor, Department of Information
is blessed with a strong and internationally prominent and Systems Management
faculty. Besides being a group of active researchers, Research interests include time series analysis
many of them are well known leaders in their specific and stochastic control with applications in financial
academic fields. The two master programs have also derivatives markets.
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- David COOK, PhD University of Wisconsin, Madison
the art academic theories as well as the most current
Associate Professor, Department of Economics
market practices from our two master programs.
Research interests include macroeconomics and
Following is a list of faculty members who taught in the
monetary economics, economic growth and
MSc(FA) and MSc(IM) programs in 2009-10:
econometrics; has published articles in the Journal
of Economic Dynamics and Control, the Journal of
Monetary Economics and the Review of Economics and
Mohammed APABHAI, PhD Oxford
Statistics.
Adjunct Professor, Department of Finance
Research Interests include term structure modelling and
valuation of yield curve derivative securities. Extensive Fei DING, PhD Duke
professional experience in equity derivative strategy.
Assistant Professor, Department of Finance
Currently working in a renowned international bank.
Research interests include financial contracting theory in
corporations; the money management industry (mutual
funds and hedge funds); venture capital; markets
Jonathan BATTEN, PhD Sydney
microstructure.
Adjunct Professor, Department of Finance
Research interests include financial time-series;
econometrics; policy issues related to bond market and Larry FRANKLIN, MBA, JD, Stanford University
financial market development; credit and financial risk
Adjunct Professor, Department of Finance
management; corporate citizenship and governance by
Substantial experience in the financial services industry
corporations. Has published articles in Applied Financial
as an investment banker, commercial banker and bank
Economics, the Journal of Financial and Quantitative
lawyer; extensive teaching experience in various premier
Finance, the Journal of International Financial Markets,
universities.
and Institutions of Money.

Jie GAN, PhD Massachusetts Institute of Technology
Assistant Professor, Department of Finance
Research 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 Finance
Research 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 Finance
Extensive 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 Finance
Research 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.
17
Francois-Serge LHABITANT, PhD University of
Lausanne
Visiting Professor, Department of Finance
Research 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 Finance
Research 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 Accounting
Research 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 Finance
Research 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 Finance
Associate Director, MSc in Financial Analysis/ MSc in
Investment Management
Research 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 Management
Research 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 Finance
Research 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.

John K. C. WEI, PhD University of Illinois, Urbana-
Champaign
Chair Professor, Department of Finance
Academic Director, MSc in Financial Analysis/ MSc in
Investment Management
Associate 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 Finance
Research 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.
19
Jerome YEN, PhD University of Arizona
Adjunct Professor, Department of Finance
Research 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 Finance
Research 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 Courses
Accounting Foundations 2 credits
Introduction to accounting concepts, preparation and
interpretation of financial statements.
Corporate Finance 2 credits
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.
Derivatives Analysis 2 credits
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.
Foundations of Economic Analysis 2 credits
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.
Investment Analysis 2 credits
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.
Statistics for Financial Analysis 2 credits
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 Derivatives Analysis 2 credits
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.

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.
Fixed Income Analysis 2 credits
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.
Financial Modeling 2 credits
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.
21
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.

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.
23
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
HKUST Business School
Research Centers
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.

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.
25
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.

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.
27
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 Results

I 1 Feb, 10 Feb – Mar, 10 Mid Mar, 10
II 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 Office

The Hong Kong University of Science and Technology
Clear Water Bay, Kowloon, Hong Kong
Telephone no. : (852) 2623 1120
Fax no. : (852) 2358 2463
Email : gradmit@ust.hk
Website : http://www.ab.ust.hk/arr/adm/

For further enquiries about the programs, please contact:

MSc(FA)/IM Program Office
Department of Finance
School of Business and Management
The Hong Kong University of Science and Technology
Clear Water Bay
Kowloon, Hong Kong
Telephone no. : (852) 2358 8317 / (852) 2358 7673 / (852) 2358 7677
Fax no. : (852) 2358 1749
Email : mfin@ust.hk
PTC-G13258 Printed on recycled paper