1 Practical Finance Knowledge Backed by Academic Rigor
2 Contents The HKUST Business School Message from the Academic Director Program Design Program Schedule Program Curriculum Our Faculty Our Students Admissions
3 3 HKUST BUSINESS SCHOOL Master of Science in Investment / Financial 4 THE HKUST Business School Established in 1991, the School of Business and at the Hong Kong University of Science and Technology (HKUST Business School) is young, dynamic, and highly regarded, both for the quality of its programs and the impact of its research. The HKUST Business School is the first business school in Asia to be awarded accreditation by both the US-based Association to Advance Collegiate Schools of Business (AACSB International) and the European Quality Improvement System (EQUIS). The degrees offered by the HKUST Business School are recognized and respected worldwide. The HKUST Business School is recognized as Asia s youngest but most respected business school (Financial Times). Our programs are known for their cutting edge design and delivery, and are consistently ranked among the very best in the world by international media. Financial Times Global EMBA Rankings World No.1 Kellogg-HKUST EMBA Program Financial Times MBA Rankings Asia No.1 HKUST MBA Program Financial Times Asia s youngest but most respected business school The Economist One of the world s best qualified faculties QS Asian University Rankings Asia No. 1 4
4 5 HKUST BUSINESS SCHOOL Master of Science in Investment / Financial 6 Program Design Message from the Academic Director The best investment is the one you make in yourself. Our nearly 1,000 graduates from the Master of Science in Investment / Financial programs (MScIM/FA) since 1996 can attest to this and to the high returns (and low risk) that our programs can deliver to your career. Whether you currently work in finance or just wish to better understand the financial services industry, our programs can help you achieve your goals. True to HKUST s great success in the business rankings (1st in Asia for both teaching and research), we follow international standards of excellence. We attract and enrol the best students, teach them to tackle financial problems with rigor, skill, and creativity, and graduate impeccably-trained, thoughtful finance professionals, eager to serve industry and society. The Master of Science in Investment Program (MScIM) is best suited to those who wish to operate in fund management, insurance, securities, wealth management, etc. The Master of Science in Financial Program (MScFA) is best suited to those who wish to operate in corporate finance, investment and commercial banking, private equity and venture capital, security analysis, etc. Our programs are widely regarded as the premier MSc finance programs offered in Hong Kong and Asia. Our instructors are world-class business school faculty and industry experts. HKUST finance faculty hold PhDs from top universities in North America and Europe. They are committed to advancing knowledge through fundamental and applied research, and to bringing their discoveries to the classroom. Many of our elective classes are taught by industry experts, carefully chosen among established practitioners, to share their experience, the latest developments, industry trends, and best business practices with you. Our careful attention to selectivity ensures that students admitted to the program are of high calibre, which enhances the classroom experience and makes for good networking. You will gain much from your classmates, whether on course materials, timemanagement, emotional support, or job opportunities. You will make life-long friends. Many of our graduates keep in touch with each other and the program. Our alumni are key stakeholders and contributors to the program, helping to shape the curriculum and enhancing its relevance and value over time. Consider joining our MScIM/FA community. It could be one of your best investment decisions yet! We look forward to meeting you at HKUST. The Master of Science in Investment program (MScIM) and the Master of Science in Financial program (MScFA) provide rigorous training for students pursuing professional careers in the finance industry. Since their inception in 1996 and 2002, both programs have been widely recognized by finance professionals as premier academic programs. The curricula of both programs are constantly adapted to meet the growing and specialized demands of industry. Both programs offer solid foundations in accounting, economics, quantitative and computing skills, asset valuation and financial derivatives, which form the core subjects in the Chartered Financial Analysts (CFA) examinations curriculum. The programs curricula and course scheduling are sequenced to support students who wish to take the CFA examinations. Students then build on this broad knowledge base by selecting advanced courses and specialized electives that lead to concentrations in Asset, Risk, Corporate Finance, or Security. During the program, enrichment activities and luncheon talks are organized to provide students with platforms in networking with industry practitioners in Hong Kong. In addition, a study tour is arranged during the semester break. The study tour will help the students to understand the industry landscape, develop applied skills in industry and company analysis, and network with industry practitioners outside Hong Kong. Cutting-Edge Curriculum We continually revise and adapt the curriculum to meet the evolving needs of industry and developments in the financial markets. We work closely with industry players and professional associations to ensure that our students develop into high-potential graduates proficient in all aspects of finance and ready for the greater responsibilities that await them as they progress in their careers. Professional Association Partnerships We work closely with industry and professional associations to ensure the currency and relevance of our programs to the finance profession. The MScIM/FA programs are Program Partner of Chartered Financial (CFA) Institute. The curricula and course scheduling of both programs are sequenced to support students who wish to take the CFA examinations. The CFA Institute offers scholarships to HKUST students to defray the cost of taking the CFA exams. Prof Peter MacKay MScIM/FA Academic Director PhD, Purdue University
5 Master of Science in 7 HKUST BUSINESS SCHOOL Investment / Financial 8 Program Schedule Program Curriculum The MScIM/FA programs are offered on a part- declare both concentrations within their program. time basis. Both programs commence in August every year. Students can complete all program requirements in months for a total of 30 credits and declare one concentration. Students Each program offers two concentrations: MScIM: Asset, Risk MscFA: Corporate Finance, Security Students are required to complete a total of 30 credits (15 courses) of coursework in order to graduate, including 12 credits from core courses (6 courses), 8 credits from required courses (4 courses) and 10 credits from elective courses (5 courses). Each course carries 2 credits. may take additional electives up to 38 credits and MSc in Investment (MScIM) MSc in Financial (MScFA) Year 1 Year 2 Year 1 Year 2 Summer (August) Statistics for Financial Elective II Statistics for Financial Elective I Sept - Dec (Fall Term) Accounting Foundations Corporate Finance Investment Derivatives Equity Investment Financial Modeling Elective III, IV Accounting Foundations Corporate Finance Investment Derivatives Advanced topics in Financial Elective II, III, IV Jan (Winter Term) Foundations of Economic Elective V Foundations of Economic Elective V Common Core Courses (Total: 12 credits) Required Courses for MScIM (Total: 8 credits) Required Courses for MScFA (Total: 8 credits) Electives (Total: 10 credits) Feb - May (Spring Term) Advanced Derivatives Fixed Income Elective I Review course on Ethics for CFA exam (0 credit) Advanced Derivatives Fixed Income Corporate Financial Reporting I Review course on Ethics for CFA exam (0 credit) Accounting Foundations Advanced Derivatives Advanced Derivatives Corporate Finance Fixed Income Fixed Income Derivatives Financial Modeling Advanced Topics in Financial Students choose five elective courses based on course offering, desired concentration (if any), schedule, and venue. (Please refer to the sample electives on P.9) Expected no. of credits taken Foundations of Economic Equity Investment Corporate Financial Reporting I Graduation Total no. of credits taken 30 Total no. of credits taken 30 Investment Completion of MScIM with one optional concentration of either Asset or Risk Completion of MScFA with one optional concentration of either Corporate Finance or Security Statistics for Financial 1. Classes are held both on weekday evenings (downtown) and Saturdays (main campus). There are two different class-schedule patterns for the core and required courses: Saturday only or weekday evening plus Saturday afternoon. Students can choose the pattern which best suits their work schedules. 2. Students are allowed to transfer freely between the MScIM and MScFA program before the end of the first year. They can finalize their program choice after completing the core courses. 3. Students who do not wish to take the CFA exam (Level I) in June may take one elective in May of Year 1.
6 9 HKUST BUSINESS SCHOOL Master of Science in Investment / Financial 10 Sample Elective Courses Course Descriptions Electives (5 courses, 10 credits, with at least 4 specified electives needed to fulfill a desired concentration) Course Title MScIM in Risk Concentrations MScIM in Asset Advanced Derivatives Applications MScFA in Corporate Finance MScFA in Security Asset Securitization Behavioral Finance Corporate Risk Entrepreneurial Finance & Family Business Equity Investment Equity Valuation Financial Markets in China Fixed Income Derivatives Foreign Exchange Market Global Economy and Emerging Markets Hedge Funds Investment and Finance in China Mergers, Acquisitions & Restructuring Project Finance Raising Debt in the Financial Markets Real Estate Investment 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 (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 (2 credits) An examination of some micro- and macroeconomic 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 advances and returns to capital and balance of payments. Investment (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 and convexity. Statistics for Financial (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. Regulatory Framework for Financial Services Industry Risk for Financial Institutions Statistical Methods for Risk Strategic Finance and Value Creation Structured Products & Exotic Options Trading in Equity Markets Venture Capital & Private Equity * The above elective courses are subject to change at the discretion of the MScIM/FA Program Office.
7 Master of Science in 11 HKUST BUSINESS SCHOOL Investment / Financial 12 OUR Faculty Recognized as one of the few institutions in the Asia- Besides being a group of active researchers, many are REQUIRED COURSES (8 CREDITS) Pacific Region that is known internationally for its high standing in the world of research, HKUST boasts a well known leaders in their specific academic fields. The following is a partial list of the teaching faculty for the Advanced Topics in Financial (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 (2 credits) Advanced techniques in option pricing and derivatives risk management. Topics include the binomial model, risk-neutral valuation, extension Equity Investment (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, and stock market inefficiency will be discussed. Advanced techniques in portfolio construction such as the Black-Litterman model, single index and multifactor are studied. strong and internationally-prominent finance faculty. Prof Sudipto DASGUPTA Head/Chair Professor (PhD, University of Southern California) Corporate finance; Auction theory; Industrial organization; Game theory MScIM/FA programs: Prof Peter MACKAY Associate Head/ Associate Professor MScIM/FA Academic Director (PhD, Purdue University) Corporate finance; Financial institutions and management; International finance; Real options; Risk management 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, Fixed Income (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. Prof. John K. C. WEI Chair Professor (PhD, University of Illinois, Urbana-Champaign) Asset pricing; Investments; options and futures; Corporate governance Prof Vidhan K GOYAL Professor (PhD, University of Pittsburgh) Capital structure; Debt contracts corporate governance; Mergers and acquisitions; Corporate restructuring including analysts. Topics include inventories, fixed assets, income taxes, liabilities, leases, offbalance-sheet debt, and dilutive securities. Financial Modeling (2 credits) 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. Prof Chu ZHANG Professor MScIM(Full-time) Academic Director (PhD, University of Chicago) Asset pricing theories and Empirical studies; Financial Markets and institutions in China and Japan Prof Kasper Meisner NIELSEN Associate Professor (PhD, University of Copenhagen) Applied microeconometrics; Corporate governance; Entrepreneurial finance and private equity investments; Family and privately held firms; Household finance; Risk management Prof. Jialin YU Associate Professor Associate Director, MScIM/FA (PhD, Princeton University) Return predictability; Market efficiency; Chinese financial markets Veronique A. LAFON- VINAIS Associate Professor of Business Education, Associate Director, Center for Asian Financial Markets (MSc, HEC ; Masters in International Law, La Sorbonne) Credit & Debt Markets with focus on Asia; CSR & SRI; Sustainability issues
8 Master of Science in 13 HKUST BUSINESS SCHOOL Investment / Financial 14 OUR StudentS Admissions A Class of Professional Talent Admission Requirements Our students comprise a rich mix of academic and professional backgrounds. The students of the intake are mainly from Business Administration backgrounds with an average Computer & IT Science 8% Arts & Social Science 14% Academic Background 8% Engineering 14% Others 3% Business Administration 53% of nearly 6 years of full-time postgraduate work experience. The majority of the class are working in banking/finance industries or with job functions related to the finance area. However, students from all backgrounds are encouraged to apply. Years of Work Experience years 4% 6-10 years 36% over 20 years 3-5 years 24% 1-3 years 34% Applicants should meet the following requirements: A Good Undergraduate Degree Applicants must possess a bachelor s degree from a recognized university or approved institution. English Proficiency Applicants whose first language is not English, and whose bachelor s degree or equivalent qualification* was awarded by an institution where the medium of instruction was not English, are required to fulfill the minimum English Language requirements in TOEFL/IELTS examinations. *Qualification with duration equivalent to a full-time bachelor s degree (i.e., at least 3 years). Work Experience Work experience is required and applicants are required to have at least one year full-time postqualification work experience by the time instruction begins (August). GMAT/GRE Applicants are highly encouraged to take the GMAT or GRE tests. Although these tests are not required, candidates who can show such scores stand a higher chance of consideration and better odds of admission. The key selection criteria will be assessed through written and/or online application documents and through a personal assessment interview. Industry Job Functions Property Mgmt Research & Survey Engineering 3% Education 3% Accounting 5% IT Public Utility Manufacturing Logistics 1% Banking / Finance 78% Others 5% Accounting 7% General 9% Engineering 9% Information System 3% Sales & Marketing 3% Finance 64%
9 Master of Science in 15 HKUST BUSINESS SCHOOL Investment / Financial 16 Program Fee & Scholarships Application Procedure Program Fee Program fee is charged on a per credit basis. The fee for the intake is set at HKD 7,500 per credit, a total of HKD225,000 for 30 credits, payable in 2 installments. Scholarships A limited number of Achievement Scholarships will be awarded to students who show outstanding academic performance during the program. CEF Reimbursement Four of the courses have been included in the list of reimbursable courses for Hong Kong s Continuing Education Fund (CEF) purposes. Students who are eligible for CEF can apply for reimbursement of a maximum sum of HKD 10,000 upon successful completion of the qualifying courses. Please refer to the Continuing Education Fund website at for more information. Application Deadlines We invite applications from September 2014 onwards for the intake. Application deadlines are as follows: PHASE APPLICATION DEADLINE I Dec 15, 2014 II Jan 31, 2015 III Apr 2, 2015 Application Materials Applications should include the following materials*: Completed online application form CV/ resume with photo Academic transcript(s) Degree certificate(s) Official GMAT or GRE score report (if applicable) Official TOEFL or IELTS score report (if applicable) Professional qualifications (if applicable) Two reference letters Application fee Only complete applications (including full payment of the application fee) will be considered for review. Shortlisted applicants may be invited for an interview. * For application purposes, copies of documents or unofficial transcripts are sufficient. However, admitted candidates must produce official transcripts and originals (or certified copies) of all documents. APPLY ONLINE NOW!
10 Master of Science in 17 HKUST BUSINESS SCHOOL Investment / Financial 18 Practical Finance KNOWLEDGE BACKED BY ACADEMIC RIGOR
11 19 HKUST BUSINESS SCHOOL HKUST BUSINESS SCHOOL Master of Science in Investment / Master of Science in Financial (Part-time) Room 2037, 2/F, Lee Shau Kee Business Building HKUST Business School The Hong Kong University of Science & Technology Clear Water Bay, Kowloon, Hong Kong Phone: (852) Fax: (852) Website: