This paper points out that all of the Technological Property Exchange (TPE)in China has become a major channel that venture capital is invested in enterprises, and the asymmetric information between the transaction of the technological property is an essential characteristic, so the transaction instruments at present are not suited for objective reality. Then on the basis of theoretical analysis, a conclusion is arrived at that the TPE should innovate its transaction instruments, and new transaction instruments, as investment option and preferred stock, should be adopted and the feasibility is analyzed.

The methods of tax avoidance in common used by the multinational company in China are discussed; the causes of the multinational corporation’s tax avoidance are analyzed. On one hand, some special tax treatment on the foreign investor should be canceled, and the rules of anti-avoidance of tax should be made in China but also the foreign tax management should be strengthened, the basic informational construction should be improved, And the government should improve the system of tax collection. On the other hand, the international exchange and corporation on ant-avoidance of tax should be developed; singing the bilateral and multilateral tax agreement may solve some problems of tax avoidance.

The Financial Services Authority (FSA) has gained some useful experience from a single financial services regulator in the UK. It reflects the outcome of a long process of gradual change in the regulation of Britain’s financial sector. The process of regulatory change was itself motivated by, and was at times a catalyst for, more fundamental changes in the structure of the regulated industry. Thus to understand the policy background to the Act it is necessary to understand the processes of both industry and regulatory change extending back over several decades.

In this paper, the author observes a stationary volume/price pattern, while studying the relationship between volume and price through the amount of transaction in stock market. The probability of accumulated trading volume (actual supply/demand volume) that distributes over its price range gradually emerges the maximum around the price mean value in a transaction body system when it takes a longer trading time regardless of its price fluctuation path or time series in the time interval. The volume/price behaves a probability wave toward an actual supply/demand equilibrium price, forced by a linear central actual supply/demand potential. In terms of physics, the author establishes a transaction (actual supply/demand) energy hypothesis, defines a measurable actual supply/demand restoring force, derives a time-independent security transaction (actual supply/demand) probability wave differential equation, and obtains an explicit volume/price distribution function, the distribution of absolute zero-order Bessel eigenfunctions, in a stable transaction body system when its supply/demand is in a dynamic state. By fitting and testing the function with intraday real transaction volume/price distributions on a considerable number of individual stocks in Shanghai 180 Index, the author demonstrates its validation at this early stage, and attempts to offer a micro and dynamic actual supply/demand volume/price wave theory. JEL classification: G12; D50; C51; C52

This paper intuitively examines the dynamic behavior of two highly relevant interest rates in China. The first one is the government rate, which is decided and published by the central bank and can be simulated by pure jump process. Estimation of the jump intension is given out. And by different robustness test, it keeps stable. The jump size has met the condition to make interest rate within reasonable bounds and shows some meaning of economic cycle behavior. The second one is the market rate, which is estimated by spline approximation based on the transaction data of government bonds. Several models, including Vasicek model, Vasicek-GARCH (1,1) model, CIR model, and CIR-GARCH(1,1), are empirically tested and the best performance is done by the Vasicek-GARCH(1,1) model. Furthermore, the estimate bias problem due to the near unit root process is tested and evidenced by both traditional methods and GPH test. Impact of government rate on market rate is finally checked and analyzed.

Abstract: This paper is mainly to achieve two aims: 1. present industry analysis on investment banking business; 2. value Goldman Sachs stock through different methods. The paper is consisted of eight parts. Part one is introduction. In part two we make a general review on I-banking industry. In part three we present the profile of Goldman Sachs Group. Then in part four we will analyse GS financial data, based on its latest annual reports. In part five, we will briefly list business risks for GS. In part six we compare fundamental valuation ratios of three biggest investment banks. In part seven we present relevant valuation theory and then value Goldman Sachs stock through three methods: Dividend Discount Model, Price multiples and a simple Residual Income Model. As a final step, in the eighth part we draw a general conclusion of the paper.

Many articles agreed that it is possible for speculators to manipulate stock prices. In this article, we give a dynamic model to show in detail how one type of the trade-based manipulation is realized in stock markets, especially in emerging stock markets, where manipulators have dominative information and fund over the uninformed investors. In our model, we assume that uniformed investors predict future price movement with their forecasting model, the number of uniformed investors who decide to buy stocks increases with fitting degree of the forecasting model for past price data and the model parameters. With these assumptions, manipulators take two-step strategy (pumping the price and selling stocks at higher prices), the pumping step aims to absorb uninformed investors' following by buying the stock by use of the forecasting model, and the selling step is to sell all the stock in higher prices by trying their best to control the supplies and continually attracting the uniformed investors’ following. We show that manipulators can realize their strategies and maximize their final wealth by controlling the strength of pumping and deciding the time length to sell out the stocks. Two numerical examples are also given.

银行并购是银行业变革在组织机构上的体现，这种变革的发生会对并购银行本身、相关国家及国际银行业产生深远影响。中国经过20多年的改革，银行业发生了巨变。随着经济增长回升和经济效益改善，银行业的竞争力明显提高，已初步具备了现代商业银行特征。然而，一些诸如竞争性不强、规模不经济；稳健性不够、盈利能力不强等深层次问题依然突出。通过分析，银行并购可以提升中国银行业的竞争力，解决规模不经济问题，培育大型企业集团等，是一种较为理想的改革中国银行业的途径。 It is bank’s M&A that embodies the change of banking on the organization.While inevitably exert a far-reaching effect on the banks themselves in the M&A, it will influence the relevant country and international banking. In China, the banking structure has been improved since 1978. But from the data in the paper, we can conclude that Chinese banking market structure is oligopoly and Chinese banking is inefficient. It is just the Bank’s M&A that can promote the competitive power of Chinese banking, improve the reasonable allocation of financial resources, and ensure the stability of financial system. Bank’s M&A is a comparatively ideal way to reform Chinese banking.

This is the first study that uses Merton’s (1974) option pricing model to compute default measures for individual firms and assess the effect of default risk on equity returns. The size effect is a default effect, and this is also largely true for the book-to-market (BM) effect. Both exist only in segments of the market with high default risk. Default risk is systematic risk. The Fama-French (FF) factors SMB and HML contain some default-related information, but this is not the main reason that the FF model can explain the cross-section of equity returns.

This paper makes indirect inference about the time-variation in expected stock returns by comparing unconditional sample variances to estimates of expected conditional variances. The evidence reveals more predictability as more information is used, and no evidence that predictability has diminished in recent years. Semi-strong form evidence suggests that timevariation in expected returns remains economically important.