Finance has been a separate discipline for at least half a century in China.However,prior to the end of the 1990s,academic research into finance mainly focused on money and banking areas.In the past decade,more and more young scholars have undertaken financial research using the West financial framework and techniques.Two factors facilitated this transformation.First,two Chinese stock exchanges were established in the early 1990s,and since then,the financial market has experienced the fastest growth in the world;and second,a large number of scholars who obtained formal PhD training in West countries reted to China,and promoted academic research using the same theoretical framework and techniques as those used in West countries.Despite this short history,these young financial economists have become an important force in the global financial academic community.Along with China’s economy growth,China has now become an innegligible part of intational financial markets.Moreover,more and more investable assets are accessible to foreign individual and institutional investors.Therefore,a deep understanding of financial issues such as asset allocation,the monetary policy transmission mechanism,and corporate financial policy and corporate govance in China,is essential not only to Chinese scholars and investors,but also to intational academics and financial market practitioners.