The course is an overview of China's evolving financial system in the reform era. To unravel the inner logic of the Chinese financial system, the course examines the various components of the financial sector, e.g., the banking sector, the foreign exchange market, the money market and the equity market. In addition, the challenges confronting China's financial sector in the new millennium are explored. Among the special topics discussed are China's accession to the WTO, the liberalization of interest rates, capital account liberalization, the choice of exchange rate arrangement for renminbi as well as measures to resolve the risks of the financial sector. Students are advised to take ECO1011 and 1021 before taking this course.