Since the beginning of this year, the turmoil in the Chinese financial market has raised serious concern on the progress of the financial reform.

Anbound's research team has summarized the problems of the China’s market as follow: -

(i)The market unrest in China is usually caused by institutional factors;

(ii)The lack of systemic reform and innovation;

(iii)The non-market obstructions have caused inefficient allocation of financial resources, resulting in shortage of financial resources, distorting the price signals in financial market.

In light of the increased downward pressure on the Chinese economy and the skepticism over the reform, China should accelerate its marketization reform to unleash fresh institutional vitality.