First Class in the New Year of Ox: Professor Jun Qian Elaborates On “Investment Bank Environment”


On February 21st 2021, FISF started the first day of the new semester. Professor Jun Qian, Executive Dean of FISF, gave the first class to 2020 FMBA PT+ Students at the Huangpu Campus in a splendid way. High-spirited and vigorous, students followed Professor Qian’s lead and learned the core concepts of the financial market, setting out on a new journey in the new term.

In this first class, Qian focused on the topic of “M&A theory and framework of investment banking”, and starting from the recent acquisition trends in e-commerce and the Internet technology industry, introduced to students some focal acquisition cases under the background of globalization so as to further explain some basic knowledge of acquisition. Then he interpreted the cooperative effects and integration costs of acquisitions, competition of control rights, enforcement of anti-monopoly laws, M&A risks and other key points. To conclude, Professor Qian ended with the anti-monopoly investigation that the few major technology and platform companies faced during acquisition, arousing students’ enthusiasm for studying enterprise acquisition problems by means of integrating theoretical framework and practical evidence.

Professor Jun Qian analyzing acquisition cases

Under Professor Jun Qian’s guidance, students made gradual analysis and in-depth discussions. They said the class brought their recognition of enterprise acquisitions to a deeper level in all dimensions, and enriched their logical framework in reflecting on financial issues. After taking the first class, students’ passion and anticipation for the new term was evoked by Investment Banking. We look forward to joint efforts with you to set out on a new round of harvest journey!

After-class reflections

Following Professor Jun Qian to have an overall view of the investment bank environment

Yingwei Cai

student of 2020 FMBA PT+

After the winter vacation, FISF FMBA PT+ students once again continued their cultivation journey. The first class of the new term was the long-awaited subject, Investment Banking. In the Huangpu campus, those familiar faces were back with full vitality, ready to set sail.

In the class, students were high-spirited, talking and laughing all through the process. Then the classroom came to a sudden silence when Professor Jun Qian, wearing an Indigo slim-cut suit and a scarlet long scarf, stepped in, looking elegant and dignified.

The investment bank environment is all about mergers and acquisitions. Professor Qian unveiled a grand and magnificent picture of the sophisticated world filled with entanglement of gratitude and resentment.

Conflicts in the market. Every enterprise is striving to grow. For the sake of their self needs, enterprises may choose to develop, to transform, to construct ecology or to unify the entire industry, displaying certain motives for mergers or acquisitions with other enterprises. This is the origin and purpose of enterprise acquisitions.

Calculations in the market. Both enterprises and individuals have their respective deploys and plans. If one enterprise holds the key production element of another, such as the core component, then the former will quite possibly take advantage of the weak position of the latter so as to overcharge it. Therefore, enterprises should keep strong and independent instead of waiting for others to offer help. Besides, in an acquisition process involving dispersed minority shareholders, an enterprise may offer a “hard-to-refuse” or “seemingly perfect” conditions to them in order to close the deal quickly. But the actual case is that to balance the economic account, shareholders that agree to the conditions earlier within the limited time may get munificent rewards while rewards for those agreeing later may gradually decline. It’s a matter of expedience, an act of incapability, and a forced-out “two-tier acquisition” arrangement.

Resentment in the market. It is common to see gentlemen dueling for “fair ladies”. First two enterprises are in a romantic relationship, then a third one comes, bringing green-eyed envy. Then a forceful fight for love, cash competitions and public resentment ensues. Business, nothing different from love, may drive people crazy. So how can we keep a clear head and make right life decisions? Valuations of current status, cooperative effects and integration costs are solid solutions.

Tender feelings in the market. In a complete market environment, there is more than resentment. Natural wisdom teaches us that help starts with acquaintances. This means, financing goes to “friends and relatives” (acquaintances) first, then banks (equity financing), and finally to the capital market (equity financing). That’s because people who know you are more likely to offer help, financing with collateral has lower cost, while the stock market where no one know you costs the most. This wisdom is passed to us humans by woodpeckers, known as the Pecking Order Theory.

A person’s heart revealed in the market. Whether investments or acquisitions, they are all human acts, and in acquisitions, humans are just the most difficult to estimate. An acquisition game requires rational guidance, but more importantly requires taking non-rational factors into consideration, like perspective taking and comprehensive judgment. This is the charm of acquisition negotiations, and also the core knowledge that students wish most to learn from the subject of Investment Banking.

In the first class of the new year of ox, Professor Qian revealed a small corner of the financial market. To know more about it, please stay informed of the following classes of FISF FMBA PT+.

FMBA PT+ students getting new term surprises

A senior student comments highly of the class

“I’m a soon-to-graduate student from the first-session class. Last year I took Professor Jun Qian’s Investment Banking, and I’m still impressed. The class was insightful, full of real stuff. Professor made in-depth analysis on both classic and hot cases, covering China and the West in various fields all through the 30 years since reform and opening-up.

Later Professor Qian became my paper tutor. He not only guided me in writing my paper, but also cares about my personal growth. When making life decisions, he will give me valuable advice from a tutor’s perspective, helping me clarify my mind and thus choose a better and more challenging career development platform. In the future, I’ll apply what I’ve learned here to make contributions to promoting the stability of China’s financial system with my own wisdom and strength.”

Yaohua Liu, an internal student of 2019 FMBA PT+, Student Ambassador

The new term of the ox year starts from the first class!

Do you want to experience the cognitive storm provided byFISF professors?

Do you want to gain a series of surprises in FISF classes?

Professors of the FISF FMBA PT+ program invites you to welcome a better self in this new year of ox!