In recent few days, A-share market experienced great changes which show that the quotation and state of domestic stock market are very unstable. In the opinion of ANBOUND research team, Chinese stock market and financial market are always influenced and intervened by policies. Only analyzing Chinese market through political economy which combines politics, economy and society, can bring out the reality in current China. Only policies based on such judgments can contribute to achieving the general market of economic and financial development. Policy makers need to understand the market's expectations, follow market trend and national economic targets, and ensure stable policy expectations of the market at the same time. This is what policy departments should do.