The Chinese government has undertaken significant institutional reforms around three main pillars: (1) building a comprehensive control framework to reinforce financial stability through enhanced Party supervision, (2) enhancing mechanisms to support the real economy by channeling financial resources into strategic industries such as technology, green finance, inclusive finance, pension finance, and digital finance, and (3) advancing market-oriented financial reforms, particularly interest rate liberalization, to improve capital allocation and address chronic credit constraints, especially for small and medium private enterprises. However, challenges persist, including excessive investment in real estate, local government debt, and underdeveloped capital markets. China is addressing these through supply-side reforms of capital markets, improved regulatory oversight, and efforts to foster world-class investment banks.