Customer Reviews

China's Financial Markets: An Insider's Guide to How the Markets Work

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What is famous professor of Financial Engineering Salih N. Neftci doing writing about China's financial markets? What could this possibly have to do with his excellent work demonstrating equivalent cash flows and creating synthetic instruments?

Well "omnia et nihilos" (everything and nothing). Neftci's welcome clarity is once again evident here (this time with an edditor's hand), and his efficiency in breaking down topics into digestible bites is also very much in evidence. But Neftci must have picked up his interest in China's growing financial markets from the (now a whole generation) of the excellent Chinese students he has trained. Undoubtedly his students are well placed on Wall Street, China, and globally and this book will bridge their financial engineering skills with this essential study of this important emerging market's microstructure.

This is an excellent reference tool for those interested in the development of financial markets in China and would make a wonderful gift from CLSA for those who attend its annual Shanghai-Hong Kong two-week conference on Asian investments. The CLSA conference is justifiably famous for having the best speakers, firms, institutional investors, and discussions.

Hong Kong-based shareholder activist David Webb has long pointed to the dangers of minority shareholding and security holding in the Hong Kong market (and Taiwan). In Neftci's "China's Financial Markets: An Insider's Guide to How the Markets Work" Webb's concerns are amplified for the mainland China markets as well.

The Shanghai and other mainland Chinese markets are rapidly evolving, and such concepts as a limited liability non-natural person owner (a corporation), the ability to short stock (possible for floor traders, not possible for investors), and the repatriazation of profits are among the challenges that need to be faced as Chinese regulators and a global investor class seek to deploy capital efficiently. The contributions of expert Chinese insiders provide descriptions of the banking system, the mortgage, money, equity, futures, FX, and bond markets, and the all-important capital formation arms of the insurance sector. The baffling roles of government, regulators, and the now globally-powerful Chinese central bank are also covered.

Size alone won't cure poor regulatory environment or respect for property rights and repatriazation of profits. Nevertheless China's financial markets currently represent about $3 trillion and are expected to grow to "about $10 trillion by 2008." In ths face of such rapid change (delta = opportunity) it is no wonder that the master of the greeks Salih Neftci wrote this wonderful book. An excellent thoughtful work that provided first-class information and could easily have been double the size.

I very much enjoyed this book discussing China's financial markets. There are very few books available in English which cover this information. This book does not have the same political commentary as Bloomberg Press' China's Stockmarket.

I'd love to have more detail in each chapter, but this book is designed to provide a general overview of various financial markets in the People's Republic of China and contrasts China's markets with US and European markets.

The language in the book isn't very technical and anyone with a basic knowledge of the markets should be able to understand.

This book has great details on current status, issues on china finanial markets include equity, fixed income, mortgage. most important , it discusses the future trends with deep inside.
I also like Neftci's book "principal of financial engineer" with precise description on important conception.

This book really went into depths explaining not only how the Chinese financial markets are today, they also discussed what they need to do to be more competitive, what they are currently doing to resolve issues, and how the markets got they way that they are. A truly informative resource.