China's Financial Regulatory Mode Selection

The United States is the most developed country in the world, and with its most developed financial markets, it has a broad influence. By contrast to the developed and mixed financial market, the united States adopt a sectional supervision. The asymmetry is regarded as one of the cause of the financial crisis. The crisis urged the US government to reform the financial supervision. Although, American economist come up with the functional supervision in early 90s, but it remain the original form since 1933 in nature with the obstacles. The crisis rings the bell again for the lack of supervision. The US government public the financial supervision reform plan in 2009 and finally set down the proposal in March 2010 March. But there is still no big change, just with some quick measures, like strengthen the right of the Federal Reserve and creation of Consumer Financial Protection Agency.China has a similar sectional regulation system like US. Since the opening up and reform 30 years ago, China witnessed a rapid development of the economy and financial market. The financial market in China is still led by banks; the capital market is under vigorous expansion. The aim of the financial regulation is not to inhibit the financial markets, but to improve the development of economics. How to bring the financial regulation into play, encourage the development of financial markets and create a proper financial regulation system suitable with the financial markets is what we need to consider.