Finance 101 · for International Students
Course Overview
An Introductory Program

Finance 101
for International Students

What finance is, why it matters, why study it in China, and how artificial intelligence is changing the field — seen from around the world.

For international students, any major Beginner level Three sessions Taught in English
Students from many countries around a globe
About this program

Who is this program for?

You may study economics, engineering, literature, medicine or something else. All are welcome. You do not need to know finance already — we explain every new word the first time we use it.

🌍

Mixed backgrounds

Some of you have traded shares. Some have never used more than a bank card. Both are fine here.

🤝

A world classroom

Your home country is part of the material. We learn from each other's systems, not only from books.

🧮

Math and code: tools, not tests

You will need a little calculus, a little statistics and some simple coding (for example Python). But this program will not push you hard on these.

What we expect from you

Basic calculus, basic statistics and a little coding. We use them as small tools to see an idea clearly — we do not test you on hard formulas. If a formula looks difficult, stop us: we will always show the idea in plain words first.

Goals

By the end, you will be able to…

1 · Explain it simply

Say what finance is — and what it is not — in plain words to a friend.

Test: if your friend understands it, you have learned it.

2 · See it in your life

Find money choices in your own life and in your home country.

Test: name three money choices your family made this year.

3 · Explain China's role

Say why China matters in world finance, and how its system differs.

Test: compare one rule in China with one rule at home.

4 · Judge AI honestly

Weigh the good and the bad of AI in finance, with a world view.

Test: give one gain and one risk of AI in a bank.

How you will be marked: a short paper (300–500 words) or a 3-minute group talk comparing finance in China with finance in your home country.

Session 1

What Is Finance?
& Why Study It?

From the money in your pocket to the systems that build cities — we start with first ideas.

DefinitionThree big questionsFive jobs Areas of studyDaily lifeWrong ideas
Definition

So, what is finance?

A simple definition

Finance is the study of how money is raised, moved and managed over time and under risk.

Money moves

From people who save it to people who need it.

Time matters

Money today is not money in ten years.

Risk is always there

Nothing is certain. Finance prices and shares that risk.

Finance is not "get rich fast". That is betting. Finance is the plumbing that lets a whole economy work.

Read the three words

Raised = where money comes from (savings, investors). Moved = how it travels to where it is needed (banks, markets). Managed = kept safe and put to work over time.

Money flowing from savers through banks to borrowers
First ideas

Three big questions in finance

Almost every finance problem is one of these three questions wearing a different coat. When you feel lost in a finance topic, come back to this slide.

①

Where should money go?

Spend it, save it, or invest it? Should a company pay for a new plant with a bank loan or by selling shares?

In your life: keep cash, or put it in a savings account?
②

How does money travel?

How does money get from a saver to a shop owner — through a bank, through a market, or both?

In your life: who gave your family a loan, and how did they get the money?
③

How do we deal with risk?

How much gain is worth how much risk? How do we spread it, insure it, or avoid it?

In your life: insurance, or keeping money in two places instead of one.
A fourth, quieter question

How do we value anything across time and risk? This one question links every area of study you will see in the next three slides.

Try it now

Pick one money decision your family made — buying a home, sending you to study abroad, or opening a shop. Write down which of the three questions it answers, and how. Most big decisions answer all three at once.

Why finance exists

Five jobs that finance does

If finance stopped doing these five jobs, an economy would slow down very fast.

🏦

1 · Collect savings

Put many small savings together into money big enough to build things.

Example: a bank takes 10,000 small deposits and lends enough to build a factory.
🎯

2 · Send money to good uses

Move money to the best ideas, not only to the loudest ones.

Example: a fund chooses a solar company over a coal company.
🛡️

3 · Share and cut risk

Insurance, spreading money across places, and protection against shocks.

Example: crop insurance so a farmer survives a bad season.
⚖️

4 · Find prices

Markets show what a company, a bond or a currency is really worth today.

Example: a share price falls after bad news — that is price discovery.
💳

5 · Make payments

Move money quickly and safely from one person to another.

Example: paying by phone in a shop, or sending money home.
🌱

Why it all matters

When finance does these five jobs well, we get growth, jobs and new ideas. When it does them badly, we get crises and unfair loss.

A key idea

These are jobs finance does — not places it works. A bank, a stock market and a phone app all do some of these five. When one job breaks, the others feel it: bad prices feed bad loans, and bad loans feed lost savings.

Mind map

The big picture of finance

One page that connects everything from Session 1. Read it from the centre outwards.

FINANCE money across time and risk 3 Big Questions Where should money go? How does money travel? How do we handle risk? What is it worth? 5 Jobs of Finance Collect savings Send to good uses Share and cut risk Find fair prices Make payments → growth or crisis Areas of Study Company money Investing Banks & markets Phone & app finance Government money World & real people Why It Matters Growth and jobs Your daily choices Poverty & climate Peace and pressure Crises when it fails
How to read this map

Start at the centre: FINANCE. The four columns are its questions, its five jobs, its study areas, and why it matters. Every slide after this one zooms into one of these boxes — so the whole course is just this map, one box at a time.

Areas of study · 1 of 3

Two areas: company money and investing

Each area below answers the same question in a different place: where does the money come from, and what is it worth?

🏭 Company money  (Corporate Finance)

How a company finds money and chooses what to build with it.

Example: a phone maker needs ¥100 million for a new factory. Bank loan, or sell shares? A loan must be paid back with interest. Shares give away part of the company but need no repayment.
In this course you will: learn how firms pick projects and pay for them, and why that choice changes who takes the risk.

📈 Investing  (Investments & Asset Pricing)

What a share or a bond is really worth, and how to mix them together.

Example: two shares — one steady, one wild. A young person with 30 years can hold the wild one. Someone retiring next year should not.
In this course you will: learn risk versus gain, why prices move, and why "high return" always means "high risk".
Words in this slide
Share (stock) = a small piece of ownership in a company.
Bond = a loan you give to a company or government; they pay you back with interest.
Interest = the extra money you pay (or receive) for borrowing (or lending) money.
Areas of study · 2 of 3

Two areas: banks & markets, and phone finance

These two answer: who stands between the saver and the borrower — and can a phone replace them?

🏛️ Banks, markets and insurance  (Financial Institutions & Markets)

The middle people that connect savers and borrowers, and the rules that watch them.

Example: you put money in a bank. The bank lends it to a shop owner. The bank earns the gap between the two rates. That gap is the price of being the middle person.
In this course you will: learn who connects savers and borrowers, why banks can fail, and how governments watch them.

📱 Phone and app finance  (FinTech & Digital Finance)

Phones and code change how we pay, borrow and save — often skipping old steps.

Example: you pay by scanning a QR code. Or an app reads your shopping habits and gives a small loan in three minutes, with no bank visit and no paperwork.
In this course you will: study mobile payment, digital cash (e-CNY) and app lending — and see why China moved first on all three.
Words in this slide
FinTech = "financial technology": money services built with software.
QR code = the square black-and-white picture you scan with a phone to pay.
Middle person (intermediary) = a bank or fund that stands between savers and borrowers.
Areas of study · 3 of 3

Two areas: government money, and world & real people

These two answer: who pays for things that markets will not pay for — and do people really act the way textbooks say?

🏗️ Government money  (Development & Public Finance)

How governments raise and spend money for roads, schools, and help for poorer places.

Example: a city sells bonds to build a subway. The subway loses money for years, but the city grows around it. No private company would wait that long.
In this course you will: see how policy money works in China — policy banks, state firms and local government debt.

🌐 World money and real people  (International & Behavioral Finance)

Money across countries, and how real people actually behave — with fear and greed.

Example: you send money home and lose some of it to the exchange rate. Or everyone sells in a panic and prices fall far below real value.
In this course you will: compare countries, and study why people buy high and sell low even when they know better.
Words in this slide
Policy bank = a state-owned bank that lends for national goals (roads, farming, trade).
Exchange rate = the price of one currency in another.
Behavioral finance = the study of how real emotions move markets.
It is closer than you think

Finance in your daily life

You already do finance — you may just not have the words for it. Each card shows a normal moment and the finance idea hiding inside it.

📱 Paying by phone

Every tap moves money through a payment system in about a second. Behind it: clearing, settlement and trust.

🎓 A student loan

You borrow against your future income. That is the "time" part of finance in real life.

🏠 Rent or buy

A life choice with interest, rising prices and risk all mixed together.

💡 Sending money home

One currency priced in another — you meet exchange rates and fees.

👴 A pension fund

Your retirement money is invested in world markets right now, by people you will never meet.

🛒 Rising prices (inflation)

When prices rise, cash quietly loses value. Saving in cash is also a money decision.

Everyday momentWhat is really happeningThe finance idea
Paying by phoneYour money leaves one account and reaches the shop in about one second.Payments and settlement
A student loanYou spend income you have not earned yet.Time value of money
Rent or buyYou compare a known cost today with an uncertain cost later.Choice under risk
Sending money homeYou sell one currency, buy another, and pay a fee.Exchange rates and cost
A pension fundStrangers invest your money in markets you will never visit.Investing and trust
Rising pricesThe same cash buys a little less every year.Inflation
60-second activity

Write down every money action you took in the last 24 hours. Now mark each one: does it involve time, risk, or both? Almost every one will have both — that is the whole subject in one small exercise.

Think about it: which of these six did you touch in the last seven days? Most people touch at least three.

Clearing the air

Common wrong ideas about finance

Let us remove these five before they block your learning. Each wrong idea has a simple fix.

❌ "Finance is gambling"

Fix: betting creates risk for fun. Finance mostly manages risk that already exists — a farmer's weather, a company's new plant. Most of finance is boring on purpose.

❌ "It is only for rich people and Wall Street"

Fix: finance touches every life: saving, borrowing, prices, pensions, phone payment.

❌ "It is all hard math"

Fix: the ideas are simple and human. Math is only a clear language for them. We will always give the words first.

❌ "A higher return is always better"

Fix: always ask the second question: how much risk did you take to get it? 30% gain with a 50% chance of losing everything is not "better".

❌ "The market is always right"

Fix: markets are often right and sometimes badly wrong. Both extremes are false.

✅ The real point

Finance is a way of thinking about time, risk and incentives. That way of thinking is useful in any job.

The payoff

Why study finance? (even if you will not be a banker)

🧍

For you personally

Avoid debt traps. Plan for later life. Understand rising prices. Compare two loan offers and see which is really cheaper.

Try it: a "0% interest" offer with a large fee is not free. Finance helps you see that.
🏛️

For society

Finance moves savings into growth. When it puts money in the wrong places, we get crises, bubbles and unfair loss for ordinary people.

Example: the 2008 crisis started with bad housing loans and spread to the whole world.
💼

For your work

Banks, funds, fintech, company treasury, government, consulting — or running your own business.

Note: every company, even a small shop, needs someone who understands cash flow.
Where finance people workWhat they really doWhat they need from you
Commercial bankTakes deposits and lends to families and companies.Care with numbers; judgement about who can repay
Investment bank / fundHelps companies raise money; builds and manages portfolios.Valuation, risk, and clear writing
FinTech companyBuilds payment, lending and investing apps.Product sense; some coding; understanding of rules
Company treasuryManages a firm's cash, debt and currency risk.Cash-flow thinking; calm under pressure
Central bank / regulatorSets money policy and watches the whole system.Data, clear reasoning, independence
Research / consultingExplains markets and risk to clients or to the public.Explain hard things in simple words
And for your mind

Finance trains you to think clearly about trade-offs, time and incentives. That habit helps in medicine, engineering, public service or art — not only in banking.

What this course will not do

It will not make you rich, and it will not teach you to pick winning shares. Anyone who promises that is selling something. What you get instead is the ability to see what is really being offered — and that skill protects you for life.

Finance and society

Can finance help fix social problems?

Yes — and this is one of the fastest-growing parts of finance today. Money can be pointed at a problem on purpose.

🤝 Small loans

Tiny loans help poor families start a small shop when no bank will lend to them.

Example: Grameen Bank in Bangladesh lent small amounts to women with no collateral. Many paid back and grew a business.

🌱 Green bonds

Money raised on one condition: it must go to clean projects — wind, solar, clean transport.

Example: a city sells a green bond to build solar roofs on schools.

🌾 Insurance for farmers

If the weather is bad, the farmer still receives money and does not lose the farm.

Example: payout triggered by rainfall data, not by paperwork.

💸 Money sent home

Migrants send money across borders. It feeds, houses and schools families — one of the largest money flows into developing countries.

Problem: fees can take 5–10%. Cheaper transfer is itself a social gain.
Finance helping society: small loans, green energy, insurance
The big idea

Finance is not only about profit. It is also a tool to fight poverty and protect the climate — if we point it there on purpose.

Words in this slide
Microfinance = very small loans to people too poor for a normal bank.
Collateral = something you promise to the lender (a house, land) if you cannot repay.
Green bond = a bond whose money must be spent on green projects.
Remittance = money a worker sends back to family in another country.
Finance, peace and power

Can money stop a war — or start one?

Finance is not only about companies. Today it is also one of the main tools countries use instead of armies — and sometimes a cause of conflict itself.

🕊️ How finance can reduce conflict

  • Trade and investment make countries need each other. When both sides lose from a war, war becomes too costly.
  • Sanctions block money instead of sending soldiers. They are now a main tool of pressure.
  • Shared payment systems and cross-border lending build daily habits of trust.
  • Joint projects — a port, a railway, a power line — tie several countries to one shared result.

⚠️ How finance can cause conflict

  • Heavy debt can make a poor country dependent and angry at the lender.
  • Unequal deals for oil, land or minerals can start local disputes.
  • Sudden money leaving a country can crash its currency and bring unrest.
  • Sanctions hurt ordinary people too — food and medicine prices rise.
Balanced view

Finance is a tool for peace and pressure at the same time. Used well, it builds links that make war expensive. Used badly, it creates dependence and anger. This is why finance now sits inside foreign policy, not only inside business.

Words in this slide
Sanction = a rule that blocks trade or money to push a country to change its behaviour.
Debt = money a country or person owes. Capital flight = money leaving a country quickly.
Talk time

Discussion 1 — Finance in my life and my country

💬 How to work (read this first)
Step 1 · Work in groups of 3–4. Pick one speaker and one note-taker.
  1. You have about 10 minutes — roughly 2 minutes per question. Keep moving.
  2. Write short answers in plain words. One real example beats one long theory.
  3. Everyone must speak at least once. If someone is quiet, the note-taker asks them first.
  4. Then each group shares one idea with the class — 1 minute each.
💬 The questions
  1. Think of one money choice you or your family made in the last year (saving, borrowing, paying for study, sending money home). What did you give up? What did you hope to get?
  2. In your home country, where do most people keep their savings — a bank, cash at home, land, gold, or a phone app? Who lends money to families and small shops there?
  3. Do people in your country trust banks and financial companies? Give one reason for yes, or one reason for no. (There is no wrong answer — we want the reason.)
  4. Think of one problem in your home country — for example, poverty, climate change, or a local conflict. Could finance help fix part of it? Say how (for example, a small loan, an insurance, or a green bond).
Session 1 · One line

One line to remember

Takeaway

Finance is the system that moves money across time and risk — and it shapes every life, not only bankers' lives.

What we covered

Definition · three big questions · five jobs · six areas of study · daily life · wrong ideas · finance and society.

Skill you practised

Explaining a money choice in plain words, and comparing two countries.

Question left open

If every country does finance differently — what makes China different, and worth studying?

Check yourself — cover the right column firstA good answer mentions
1. In one sentence, what is finance?Money moved, managed and priced across time and risk.
2. A friend says "30% return always beats 5%". What is missing?The risk. Ask what could go wrong before you compare returns.
3. Name one way finance can help a poor family.A small loan, crop insurance, or money sent home from abroad.
4. Give one finance idea you personally touched this week.Phone payment, a loan, a price rise, or sending money home.
Words from Session 1
Share = a small piece of ownership in a company.  ·  Bond = a loan you give to a company or government.
Interest = the extra money paid for borrowing.  ·  Inflation = prices rising, so cash buys less.
Collateral = something you promise a lender if you cannot repay.  ·  Remittance = money sent home from abroad.
Microfinance = very small loans for people too poor for a bank.  ·  Green bond = a bond that must fund green projects.
Sanction = a rule blocking trade or money, used to pressure a country.

Next: Session 2

We keep the same question but move it to one country. Why is China a special place to study finance, and what can you — as an international student — gain here that you cannot gain at home?

Session 2

Why China?
& What You Can Learn Here

A very big market, different rules, a digital jump — and a front seat on fast change.

SizeRegulatorsWorld links Digital jumpYour edge
The big question

Why study finance in China?

Four reasons make China a different — not better, not worse — place to learn finance. Different is useful: it makes you question what you think is "normal".

① Very big

One of the world's largest economies, share markets and bond markets. Very high household savings.

② Different rules

The government guides the system more than in many countries. Money crossing the border is managed.

③ Digital first

From cash to phone payment and digital cash in about ten years.

④ A live lab

Reforms happen fast, so you can watch cause and effect in real time.

Shanghai skyline with a phone showing a payment code
Keep this in mind

We are not here to say China is better or worse. We are here because different systems teach you more than familiar ones. If you only study one system, you cannot see which parts of it are accidents.

One example per reason

Very big: China's bond market is larger than its stock market — the opposite of the US. Different rules: the government sets a yearly credit-growth target. Digital first: most people pay with a phone, not a card. Live lab: a new rule can appear and move markets within a month.

Size

China by the numbers

Six numbers that explain why the world watches China's markets.

2ndlargest economy and share market
5,000+listed companies (A-shares)
¥150T+bond market — one of the world's largest
~90%of adults use phone payment
#1largest test of digital central-bank cash (e-CNY)
~30%+household saving rate — high vs. many countries

Why size matters to you

A big market has more data, more kinds of companies and more kinds of problems. That means more to study — and more jobs that need people who understand it.

Why savings matter

When households save a lot, banks have a lot to lend. That shapes interest rates, company funding and how fast the economy can grow.

Words in this slide
A-share = a share of a mainland Chinese company, traded in Shanghai or Shenzhen, priced in yuan.
Bond = a loan you give to a government or company; they pay you back with interest.
Saving rate = the share of income people do not spend.

These are round teaching numbers, not exact figures. Always check fresh data before you use a number in a paper or a report.

The regulators

Who runs finance in China?

Five bodies matter most. Learn the full names — you will meet them in news, in research papers and in job interviews.

ShortFull nameJobSimilar to
PBOCPeople's Bank of China The central bank. Sets money policy, guards the currency, runs payment systems.Like the US Federal Reserve
CSRCChina Securities Regulatory Commission Watches the share and futures markets; approves listings; punishes false reports.Like the US SEC
NFRANational Financial Regulatory Administration Watches banks and insurance companies. Formed in 2023 from the old banking and insurance regulator.Bank + insurance watchdog
SAFEState Administration of Foreign Exchange Manages foreign currency and money moving in and out of the country.Gatekeeper of the capital account
MoFMinistry of Finance Issues government bonds; runs tax and spending policy.Like a treasury ministry
Words you must know
QFII = Qualified Foreign Institutional Investor: a foreign fund given a quota to buy Chinese shares and bonds. It is one of the doors into China's markets.
QDII = Qualified Domestic Institutional Investor: a Chinese fund allowed to invest outside China. It is the door going the other way.
Capital account = the record of money moving across a border to invest (not to buy goods).
Open to the world

China and the world

China's markets are not closed. They are partly open, through doors that are built on purpose — and that is itself an interesting design.

🔗 Stock Connect and Bond Connect

Channels that let world investors buy in mainland markets through Hong Kong — and let Chinese investors buy in Hong Kong.

Why it is clever: money flows both ways without fully opening the border.

📊 Inside world indexes

Chinese shares were added to MSCI, FTSE and S&P world indexes. Global funds that track those indexes now hold China automatically.

Effect: billions of dollars moved in without a single decision by those funds.

🌏 Belt and Road

Chinese money funds ports, railways and power plants across many countries. It builds links — and also creates debt questions.

💱 The yuan goes global

The RMB joined the IMF's SDR basket in 2016. That marked it as a currency other countries hold in reserve.

Why it matters: a reserve currency is trusted, so it is cheaper for that country to borrow.
Words in this slide
Index = a basket of shares used to track a market. MSCI / FTSE / S&P = companies that build these baskets.
SDR = the IMF's reserve asset. Being inside the SDR basket means a currency is treated as a world currency.
Belt and Road = China's plan to fund and build transport and energy links with many countries.
Why it is exciting

China as a live laboratory

In a slow-changing market, you study history. In a fast-changing one, you can watch cause and effect happen while you are a student.

🔬

Real experiments

When a rule changes, everything after it is a natural experiment.

Example: listing rules changed from approval to a registration system. You can study what happened to new listings before and after.
⚡

Fast change

New markets, new products and new rules appear faster than in older systems.

Example: a whole digital-payment economy appeared in about ten years.
📡

Rich data

Huge, digital money activity creates data that researchers in many countries do not have.

Example: payment records can show how a city really spends.
A warning for researchers

Because China's institutions are different, ideas found in the US or Europe do not always transfer. Good research here needs context, not only a model copied from another country.

Words in this slide
IPO = the first sale of a company's shares to the public.
Registration system = a company lists mainly by giving full, true information, instead of waiting for approval.
Mind map

Why study finance in China?

The whole of Session 2 on one page. The last column is the one that belongs to you.

WHY CHINA? different, not better or worse Very Big 2nd largest economy 5,000+ listed firms Huge bond market High household savings More data to study Different Rules PBOC · CSRC NFRA · SAFE · MoF Capital account control QFII & QDII quotas State-guided model Digital First Phone payment ~90% e-CNY (digital cash) Super-apps App lending Skipped credit cards Your Edge Compare two systems Your language Know your home market A world view Bridge between both
How to read this map

The first three columns are facts about China. The last column — Your Edge — is the one that belongs to you: your language, your home-market knowledge, and your ability to compare two systems. That is the real reason to study finance in China as a foreigner.

Markets

China's markets up close

Two markets, two different personalities. Knowing the difference saves you from copying the wrong habits from home.

FeatureShare market (A-shares)Bond market
Who tradesMany individual investors. Trading is fast and frequent. Banks and big institutions. Slower and larger.
MoodSharp swings. Prices follow news and feeling more than calm maths. Calmer. Moved mostly by interest rates and credit news.
How it opensListing moved toward a registration system (full disclosure first). Government bonds, policy-bank bonds, company bonds, city bonds.
Common mistakeTreating it like a casino because it moves fast. Ignoring it because it looks boring — it is actually the larger market.
Compare with homeWhere does your country sit on each row? Use this table directly in Discussion 2.
Words in this slide
Turnover = how often shares change hands. High turnover means fast, mood-driven trading.
Policy bank = a state-owned bank that lends for national goals.
Credit = here, borrowing by companies rather than by the government.
A picture to remember

A 25-year-old in Shanghai may trade A-shares on her phone every day, while a pension fund holds government bonds for 20 years. Same country, two very different worlds. When you read China finance news, ask first: is this about the fast market or the calm one?

The digital jump

Phones and digital cash

This is where China moved furthest and fastest — and where your home country may learn from China next.

📲 Super-apps

One app for paying, borrowing, investing and insurance. No separate banking app needed.

Example: Alipay and WeChat Pay — pay a street seller, buy a fund, or borrow, in one app.

🪙 e-CNY (digital yuan)

China's CBDC — digital cash issued by the central bank itself, not by a private company.

Why it matters: it works without the internet and without a bank account, and the state can see the flow of money.

🔎 App lending

An app reads your shopping and payment habits and gives a small loan in minutes.

Good side: people with no bank record can borrow. Bad side: privacy and bias.

🏗️ Money inside other apps

Financial services hidden inside apps that are not about money at all — now copied around the world.

Example: buying now and paying later inside a shopping app.
Word note — "leapfrog"

To leapfrog means to skip a step and jump ahead. Example: many people in China went straight from cash to phone payment, skipping credit cards. Most rich countries went cash → cards → phone, over 50 years. China did much of it in about ten. That is why studying China here is like studying the future of payments — and why the word "leapfrog" appears so often in writing about Chinese finance.

Words in this slide
CBDC = Central Bank Digital Currency. Digital cash issued by a country's central bank, so it is the same thing as cash, only on a phone. e-CNY is the name of China's CBDC.
Super-app = one app that does many jobs at once (chat, pay, borrow, invest).
Alternative data = information like shopping or phone records, used to judge a borrower who has no bank record.
Thin file = a person with little or no credit history.
Your edge

One job, different systems

Every country has to answer the same question — how does money reach the best ideas? — but they answer it differently.

ModelHow money is movedExampleTrade-off
Market-basedMostly through share and bond markets. Prices decide.United States Fast and flexible; can be unstable.
Bank-basedMostly through banks and long relationships.Germany, Japan Stable and patient; slower to fund new ideas.
State-guidedMarkets, plus strong policy direction from the government.China Can move fast on big goals; risk of money going to the wrong firms.
Your countryWhere does it fit? Most countries are a mix, not a pure type. Write your answer here and bring it to Discussion 2.
No model is "the best"

Each one trades off speed, safety and fairness. A market-based system funds new ideas fast but crashes harder. A bank-based system is calm but slow. A state-guided system can build a high-speed rail network quickly — and can also lend too much to the wrong companies.

One real example

A young tech firm needs money. In the US it sells shares on a market. In Germany it goes to a bank it has known for years. In China it may get a loan from a policy bank aimed at its industry. Same need, three roads — and each road trains a different kind of finance worker.

Talk time

Discussion 2 — Same job, different systems

💬 How to work (read this first)
Step 1 · Groups of 3–4. Draw a simple table with two columns: "China" and "My country".
  1. You have about 9 minutes — 3 minutes per question. The note-taker fills the table.
  2. Use facts or small examples, not only opinions. "In my country, people save in land" beats "it is different".
  3. Do not let one person answer all three. Change the speaker for each question.
  4. Each group gives a 1-minute summary — and must include one thing you disagreed about.
💬 The questions
  1. Pick one job that finance does (for example: helping people save safely, or lending to small companies). How does China do this job? How does your country do it? Fill both columns, then add a third line: which works better for a poor family, and why?
  2. In China the government guides finance more than in many countries. Is that safer or slower? Give one reason for each side — even if you personally agree with only one.
  3. As an international student, what can you give a Chinese bank or financial company that a local student may not have? Think about language, knowledge of your home market, and daily habits. Give one concrete example, not a general answer.
Session 2 · One line

One line to remember

Takeaway

China gives you a very big market, different rules and a digital-first jump — a special place to learn finance, especially when you bring your own country's view with you.

What we covered

Why China · six numbers · five regulators (with full names) · QFII and QDII · world links · live lab · markets · digital cash · three models compared.

Terms you now own

A-share · CBDC · e-CNY · capital account · QFII · QDII · NFRA · SAFE · Stock Connect · leapfrog.

Question left open

All of this is now being changed by artificial intelligence. What changes — and what stays?

Check yourself — cover the right column firstA good answer mentions
1. What is SAFE, and what is its full name?State Administration of Foreign Exchange — manages foreign currency and money crossing the border.
2. QFII or QDII — which brings foreign money into China?QFII (Qualified Foreign Institutional Investor). QDII is the door going out.
3. What does "leapfrog" mean here?Skipping a step — cash straight to phone payment, skipping credit cards.
4. Why is China called a "live laboratory"?Rules and markets change fast, so you can watch cause and effect in real time.
5. Is e-CNY the same as money in Alipay?No. e-CNY is CBDC — digital cash from the central bank. Alipay holds private money.
One mistake to avoid

Do not call China's financial system "closed" or "backward". It is partly open by design — Stock Connect, Bond Connect, QFII and QDII quotas are doors that were built on purpose. Saying "different" is both truer and safer in any professional setting.

Next: Session 3

We zoom out to a world view: how AI is changing finance everywhere, the risks it brings, how different regions write the rules, and what you personally should do about it.

Session 3

AI & the Future of Finance
A World View

Machines are rewriting the rules. What that means for your career — anywhere in the world.

What AI doesRisksRules by region Your move
The change

How AI is changing finance

AI is not one tool. It is a new layer under every job we studied in Session 1 — collecting savings, judging risk, finding prices, making payments.

⚡

Faster work

Reports, checks and forms finished in seconds instead of days.

🎯

Better guesses

Models read huge data to judge risk and spot fraud.

📄

Reading text

AI reads filings, news and call notes in minutes.

🤖

Very fast trading

Machines buy and sell in tiny fractions of a second.

🌍

Wider access

App advice and app loans reach people banks once ignored.

⚠️

And new risks

Unclear models, bias, and power in a few firms — next slides.

Artificial intelligence network merged with a market chart

Key idea: AI mostly changes how fast and how cheaply finance works. It does not change what finance is for.

Concrete examples

AI in each finance job

The same six jobs from Session 1, now with AI inside them.

JobWhat AI doesReal example
TradingWrites and runs trading rules without a human in the loop. Fast machine trading on small price gaps
AdviceBuilds a plan for you automatically and keeps it balanced. A robo-adviser app that rebalances your savings
LendingScores a borrower from phone, shopping and payment data. A small loan approved by an app in minutes
Risk and rulesSpots fraud and stress-tests a bank against a shock. A real-time flag when a card is used in two countries
ResearchReads news, filings and call notes at scale. A summary and mood score for 500 company reports
Writing and codeDrafts notes, writes code and answers questions. A chat assistant that helps an analyst prepare a client note
Words in this slide
Robo-adviser = an app that builds and rebalances a portfolio for you, with no human adviser.
LLM = large language model: the technology behind chat AI.
Stress test = a practice shock (a crash, a rate jump) to see whether a bank survives.
Portfolio = the collection of things you own: shares, bonds, cash.
Not one story

Three regions, three speeds

AI in finance does not look the same everywhere. The technology is similar; the rules and the priorities are not.

🇺🇸 United States

Very deep markets and the leading AI labs. Funds adopt new tools fast.

Priority: innovate first; write rules afterwards, by sector.

🇪🇺 European Union

The AI Act sorts AI by risk level. Strong data rights under GDPR.

Priority: be careful and principle-led; protect people first.

🇨🇳 China

Very wide use in daily finance (Ant Group, Ping An). State-led standards and a digital currency.

Priority: keep stability and control while growing fast.
The shared pattern

Everywhere the question is the same: how do we get AI's gains while controlling its risks? Only the balance differs. If you can work across these three balances, you are valuable anywhere.

Words in this slide
GDPR = Europe's data-protection law. AI Act = Europe's law that sorts AI systems into risk levels.
Why the priorities differ

The US trusts markets most, the EU trusts rules most, and China trusts the state most. Each grew from its own history and values — none is right or wrong. Your job is to read the balance, not to pick a winner.

The hard parts

Six risks of AI in finance

Each risk has a plain question you can ask any bank: "what happens when this goes wrong?"

⚖️ Bias

A model learns from old data. If that data was unfair, the loans will be unfair too.

Ask: was the training data fair?

🕳️ Hard to explain

Sometimes nobody can say why the model said "no". Regulators and customers need a reason.

Ask: can you explain this decision to me?

🔒 Privacy

More data means more risk of leaks. Rules differ: GDPR in Europe, PIPL in China.

Ask: who can see my data?

💼 Jobs

Office and analyst tasks move to machines. Many jobs will change; some will go.

Ask: which part of my job is routine?

🌩️ Fast crashes

If many models act the same way at once, prices can fall very fast, then bounce back.

Ask: do we all own the same model?

🤥 Wrong facts

Chat AI can state wrong numbers with total confidence. In finance that is dangerous.

Ask: where did this number come from?
Words in this slide
PIPL = Personal Information Protection Law, China's data-protection law.
Flash crash = a very fast, deep price drop that bounces back within minutes.
Hallucination = when AI invents a fact that sounds true but is not.
One root cause

All six risks share one root: a model is only as good as the data it learned from, and it has no conscience. It will not stop to ask if a loan is fair, and it will not admit when it is wrong. That is why a human must stay in the loop.

Different rules, same aims

How regions write the rules

RegionHow it worksMain tools
🇺🇸 USBy sector and principle-based. Focus on the outcome, not on one big AI law. SEC and CFTC watch the markets; NIST AI framework; guidance from each agency
🇪🇺 EUOne full law. Sorts AI by risk level and is strict for high-risk use. AI Act; GDPR; transparency and human oversight are required
🇨🇳 ChinaState-led. Focus on stability, security and control. Generative-AI measures; algorithm filing; PIPL data law

Common ground 1

Explainable models: you must be able to say why a decision was made.

Common ground 2

Human oversight: a person stays responsible for the outcome.

Common ground 3

Data control: know where data came from and who may use it.

Why this matters to you

These three points are the same in every region. That means "explaining a model" and "guarding data" are skills you can carry to any country — they will not go out of date.

The pattern in one line

The US fixes problems after they happen; the EU tries to stop them before; China directs them from the centre. Three styles, one aim: gains with guardrails. Spotting the style helps you work inside any of them.

Your response

Six things you can do

Do not wait for the future to arrive. These six actions work in any country and in any job.

1 · Learn the tools

Use chat AI and data tools as helpers, not as enemies. Try them on your own work this week.

2 · Keep the basics

AI cannot replace good judgement about value, risk and incentives. That judgement comes from the basics.

3 · Keep your world view

Comparing countries is your real edge. A machine trained on one country cannot do this for you.

4 · Learn a little code

Python and SQL are now the common language of finance. You need enough to read and ask, not to be an engineer.

5 · Always question it

Check the model's answer. Know its limits and its bias. Never put an unchecked number in front of a client.

6 · Stay flexible

The jobs of 2035 do not exist yet. The skill that lasts is learning how to learn.

If you remember only one

Use AI as a lever, not as a substitute for thinking. The person who checks the machine is worth more than the machine.

Start this week

Do one small thing: ask a chat tool to explain a term from this deck, then check its answer against the slide. That single habit already covers points 1, 2 and 5 — learn the tool, keep the basics, and always question it.

Mind map

AI in finance: the whole picture

What it does, what can go wrong, who writes the rules, and what you should do.

AI IN FINANCE faster, cheaper — same purpose What It Does Faster reports Better guesses Reads long text Very fast trading Wider access Risks Bias in old data Hard to explain Privacy loss Fewer simple jobs Fast crashes Confident wrong facts Rules by Region US: by sector EU: AI Act by risk China: state rules All: explain it All: human check Your Move Learn the tools Keep the basics Compare countries Learn a little code Always question it Stay flexible
How to read this map

Left to right: what AI does, what can go wrong, who writes the rules, and what you should do. The risks column is the mirror of the jobs column — every gain has a cost. Your Move is the only column that needs your judgement, not the machine's.

Talk time

Discussion 3 — The finance worker of 2035

💬 How to work (read this first)
Step 1 · Groups of 3–4. One person writes, one keeps time.
  1. You have about 7 minutes in groups, then a 5-minute class debate.
  2. For question 3, split your group: half must argue "more open" and half "more power" — even if you personally disagree. Arguing both sides is the exercise.
  3. Every answer needs one example. "AI will help" is not enough; say how.
  4. At the end, each student says one word for the finance worker they want to become.
💬 The questions
  1. Close your eyes and picture a finance worker in 2035. Write five things they do in a normal working day.
  2. Mark each of those five things: M if a machine can do it better, H if it needs a human. Count your M's and H's — then ask: if most are M, what is that person's job actually for?
  3. Will AI make finance open to more people, or put more power in a few big companies? Argue both sides, with one real example each. (Think: app loans reach the unbanked — but a few firms hold all the data.)
  4. What should you study now to be ready? Choose three items from the slide "Six things you can do" and say why each one will still matter in 2035.
All three sessions

What we learned

①

What finance is

Finance moves money across time and risk. It does five jobs, and it shapes every life — not only bankers' lives.

And: it can be pointed at poverty and climate on purpose.
②

Why here

China gives you a very big market, different rules, and a digital jump — a live laboratory.

And: different systems teach you more than familiar ones.
③

What is next

AI is changing how fast and how cheap finance works — not what it is for.

And: meet it with skill, basics and ethics.
Your special asset

As an international student, your world view is exactly what China's — and the world's — financial system needs. No model trained on one country can replace it.

What to do next

Take the three discussion notes from this course back to your home country. Compare one Chinese rule with one rule at home, and write the difference in one paragraph. That paragraph is your first piece of real cross-border finance thinking.

Thank you

Questions?
Let's talk.

Further reading: a basic finance textbook (for example Brealey–Myers); the PBOC and CSRC websites; BIS and IMF reports on digital currency and fintech; the EU AI Act and China's generative-AI rules for Session 3.

Session 1 · What and why Session 2 · Why China Session 3 · AI and the future

Slide overview