Advances In International Investments: Traditional and Alternative Approaches

309 Pages·2008·3.723 MB·English

by  Hung-Gay Fung, Hung-Gay Fung, Xiaoqing Eleanor Xu, Jot Yau

ADVANCE$ IN
INTERNATIONAL INVE$TMENT$
Traditional and Alternative Approaches
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ADVANCE$ IN
INTERNATIONAL INVE$TMENT$
Traditional and Alternative Approaches
editors
Hung-Gay Fung
University of Missouri, St Louis, USA
Xiaoqing Eleanor Xu
Seton Hall University, USA
Jot Yau
Seattle University, USA
World Scientific
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Library of Congress Cataloging-in-Publication Data
Advances in international investments : traditional and alternative approaches /
edited by Hung-Gay Fung, Xiaoqing Eleanor Xu & Jot Yau.
p. cm.
ISBN-13: 978-981-270-862-5
ISBN-10: 981-270-862-6
1. Investments, Foreign. 2. Capital movements. 3. International economic
relations. I. Fung, Hung-gay. II. Xu, Xiaoqing Eleanor. III. Yau, Jot.
HG4538.A48 2008
332.67'3--dc22
2007048502
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
Copyright © 2008 by World Scientific Publishing Co. Pte. Ltd.
All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means,
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Printed in Singapore.
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To my parents, Linda (wife), Anna (daughter), my brothers and sister.
H.-G. Fung
To my mom, Jiong (husband), Gloria and Joanna (daughters),
brother, and the loving memory of my dad.
X. E. Xu
To Marie, my parents, brothers, and sisters.
J. Yau
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Preface
In recent years, the globalization of the financial markets has become
increasingly accelerated, leading to an integrated world market. At the
same time, emerging markets such as China and India have opened up
their markets to foreign investors, providing more investment oppor-
tunities for the existing investment universe. In addition, more new
global investment instruments such as exchange-traded funds are
created, enabling investors to fine-tune their investment portfolios.
Financial investments are expanded to include real asset investments
such as natural resources and real estate investments. Thus, there is a
need to better understand the full range of investments available in
the global market.
There are two basic approaches that are useful in understanding
international investments. The first is presenting and discussing risk/
return tradeoffs such as foreign exchange risk, regulatory risks, and
different market impediments in global financial markets. The second
is identifying different asset classes and current issues pertaining to
them in a changing global environment. We adopt the second approach
in this book because it contains more relevant information about the
current state of global investments. Current hot topics (new financial
instruments, innovations, and strategies), are identified and different
authors who have expertise in various aspects of international invest-
ments are solicited to write for each chapter. Each chapter focuses on
the risk and opportunities related to the current topic or the finan-
cial instrument, innovation, and/or strategy identified. In addition,
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viii Preface
alternative investment instruments are included, enabling readers to
have a richer and a more complete understanding of the global invest-
ment opportunities.
For easy reference and organization, chapters are organized by
asset class, which can be labeled as the traditional and alternative
investments. The thread that runs through the entire book is:
(1) trends (what is the current topic/instrument/strategy in the cho-
sen asset class), (2) opportunities (what is new and/or where to invest
or arbitrage, i.e., location); and (3) risks (what are the risks, i.e., pecu-
liar to the location and how international investors can manage/
reduce/eliminate the respective risks).
This book has 11 chapters. The first two chapters are the intro-
duction and an overview of global investments. The next two chapters
are related to global equity investments, followed by one on global
fixed income investments and portfolio management. Four chapters
are on alternative investments. The final two chapters are on deriva-
tives and their use in risk management.
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About the Editors
Hung-Gay Fungis Dr. Y. S. Tsiang Chair Professor of Chinese Studies
at College of Business Administration, University of Missouri–St.
Louis. Dr. Fung’s research covers international finance, international
banking, and Chinese financial markets. He has published over 100
scholarly papers in leading academic journals and in professional jour-
nals. He has also published five books. He is the recipient of many
grants and academic awards. As a senior expert of Chinese finance
studies, Dr. Fung has organized many international conferences and
symposiums. He received his PhD in Finance from Georgia State
University in 1984 and BBA in Finance from the Chinese University
of Hong Kong in 1978.
Xiaoqing Eleanor Xu is Professor of Finance at the Stillman School
of Business, Seton Hall University. Her research covers fixed income,
venture capital, hedge funds, emerging markets and security market
microstructure. She has published over 20 research articles in jour-
nals such as Journal of Banking and Finance, Real Estate Economics,
Financial Analysts Journal, Journal of Portfolio Management, Journal
of Futures Markets, and Financial Review.She is the recipient of many
research grants and academic awards, including the 2006 Seton Hall
Researcher of the Year Award and the 2007 New Jersey Bright Idea
in Finance Award. She received her PhD in Finance from Syracuse
University in 1998 and MBA from Indiana State University in 1994.
Dr. Xu is a CFA charterholder.
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