Since the first quarter of this year, Chinese policy makers are focusing on strengthening financial supervision, while the monetary policy is being substantially tightened as well. However, maintaining financial regulatory strength does not mean that financial and monetary policies will not need to be adjusted in terms of flexibility. Some of the recent statistics and signs in the financial markets have already prompting the risks. This year is the year where the 19th National Congress of the Communist Party of China will be held; the Chinese policy-makers need to focus on the stability aspects of the financial and monetary policies. On one hand financial supervision should be continued to be strengthen to prevent systematic risks; on the other hand in the monetary policy should neither be too tight nor too loose to maintain economic and financial stability.