On interdisciplinary approaches in financial engineering during economic transition period in China

Financial Engineering (FE) is a vigorous interdisciplinary field that studies the concepts and techniques found in three major fields of study: finance, mathematics and computer science. Using an interdisciplinary approaches, this paper shown that the essence of FE is financial innovation and financial creativity, including the design, development and application of innovative financial instruments. With China's entry into WTO, domestic financial market faces the great challenges. The conclusion is that we must recognize the situations and make good use of the various financial tools to serve China's transition economy.