The data released recently by the central bank show that social financing scale in the first three quarters of this year is in a state of overall shrinkage, which is mainly attributed by the extremely reduced shadow banking industry. ANBOUND think tank scholars consider that it still requires proof of benefits to China's economic development by reducing shadow banking in a large scale. But the stringent control on shadow banking, one of the few financing channels for private enterprises, will undoubtedly intensify the financing plight of China’s real economy. The only way out for China’s shadow banking is to develop standardized financial derivative instruments, through which will transform shadow banking into asset management.