The Licensing Examination for Securities and Futures Intermediaries by liaoqinmei


									The Licensing Examination for                              The Securities and Futures
Securities and Futures Intermediaries                       Commission
                                                           The Mandatory Provident Fund
                                                            Schemes Authority
Paper 7 Financial Markets
                                                           The Hong Kong Mortgage
                                                            Corporation Limited
Syllabus                                                   The Insurance Authority
Topic 1: The Global Financial System                       Self-regulatory bodies
1       The role of the financial system in the   2     Participants in the Hong Kong financial
        global economy                                  system
         Supply and demand                       3     Factors affecting the Hong Kong
         Economic sectors                              market
         Flow of funds                                  Government objectives and policy
         International capital and                      The government budget
            investment flows                             China, a major trading and
         Participants in the global financial              investment partner
            system                                       The US economy
         Money and the banking system                   Other global and regional
2       The financial system and markets                    influences
         Central banks                                  Regulatory, political and social
         The process of intermediation and                 trends
            disintermediation                            The impact of technology
         Characteristics of an effective
            financial market                      Topic 3: The Equity Market
         Types of financial markets              1     Overview
         Participants in financial markets              What is equity?
         Prudential regulation and                      Why raise equity finance?
            supervision                                  Methods of raising equity finance
3       Factors affecting global financial               Why invest in equity?
                                                  2     Fundamentals of equity securities
         Economic factors and indicators
                                                         Initial Public Offerings
         Changes affecting global
                                                         Rights issues
                                                         Bonus issues
         Globalisation and technology
         Market expectations                     3     The stock market
         Lessons from the 1997 Asian                    Stock market indices
            financial crisis                             The stock exchange
                                                         Bull and bear markets
Topic 2: Financial System in Hong Kong
                                                  4     Privatisation of government-owned
1       Role of the government and regulators           companies
         The Hong Kong Monetary                  5     The Hong Kong equity market
                                                         Structure of the stock market
                                                         Types of equity securities

 Paper 7 Syllabus                                                                           P.1
           Participants in the equity market    Topic 6: Financial Risk Management
           Trading and settlement systems       1      Overview
                                                         What is risk?
Topic 4: The Debt Market
                                                         Risk versus expected return
1      Overview                                          Fundamental risk management
        What is debt?                                     techniques
        Characteristics of debt                 2      Types of financial risks
        Interest rates                                  Credit risk and settlement risk
2      Categorisation of bonds                           Market risk
3      Fundamentals of pricing debt securities           Liquidity risk
        The time value of money                         Operational risk
        Pricing of zero-coupon debt                     Other risks
          securities                             3      The risk management process
        Pricing of coupon debt securities               Identifying risk
        Credit ratings                                  Measuring risk
4      Role of the yield curve                           Managing risk
5      The Hong Kong debt market                         Monitoring risk
        Development of the Hong Kong            4      Financial risk management in Hong
           debt market                                  Kong
        Structure of the debt market                    Financial risk management
        Types of debt securities                           systems and processes
        Participants in the debt market                 Financial risk management
        Trading and settlement systems                     techniques
                                                         Financial risk management in the
Topic 5: The Foreign Exchange and                           future – lessons from the past
         Derivatives Markets
1      The foreign exchange market               Topic 7: Applications in the Financial
        Background and definitions                       Sector
        History of exchange rates               1      Corporate finance
        Exchange rate regimes                           What is corporate finance?
        The foreign exchange market                     Why corporate finance is
2      The derivatives market
                                                         The work of corporate finance
        What are derivatives?
        Function of derivatives
        Classification of derivatives           2      Asset management
                                                         What is asset management?
3      The derivatives market in Hong Kong
                                                         Why asset management is
        Structure of the derivatives market
        Types of derivatives
                                                         The work of asset management
        Participants in the derivatives                    professionals
                                                 3      Retail financial advising
        Trading and settlement systems
                                                         What is retail financial advising?

Paper 7 Syllabus                                                                            P.2
           Why retail financial advising is
           The work of retail financial
4      Interdependence of functions in the
       financial markets


Paper 7 Syllabus                               P.3

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