Facing the pressure of economic slowdown, the Chinese government and the economic community are exploring the causes and their solutions. Anbound believes that in general, China is facing excess of capital, which should bring lower capital and corporate financing costs. However, because of the role of local governments, there has been shortage of funds and higher capital costs in some areas. China's economic problem is not cyclical but rather structural reform. There is the need to reverse the resource mismatch between urban and rural areas, as well as between regions to reduce the economic resources being occupied by low-return area, in addition to changing the financing situation of private enterprises.