It's impossible to imagine a modern market economy without finance. After launching the reform and opening and opening up policy in the late 1970s, China also started to rebuilt its financial system, which was almost wiped out during the planned economy era. However, progress lagged behind the reform of the real economy for a considerable period of time. There are several reasons for this. First, in the "catch-up" era, the main task of the financial sector was to raise and allocate funds for economic development, while other financial functions were neglected to a large extent. In this context, a bank-dominated financial system seemed to be a right choice and structural reform was not an urgent issue. Second, the risks inherent in financial activities and their possible threats to social stability made the central government extremely cautious about local financial innovations. As a result, the successful local experimentation approach prevailing in the economic transition was not applicable to financial reform. Finally, as modern financial operations and supervision are highly technical, the lack of qualified financial experts also posed a significant obstacle to China's then financial development, especially before the 2000s.