Building Market-based Financial System

Based on an in-depth exploration of the financial reforms in the past twenty years and the path evolutions in China's financial market,this paper systematically sets forth the long-term objective of financial development in China from many perspectives such as the outside impact factors,the inner evolutions of financial function and the market micro-structure,which is to construct a market-based financial system so as to diversify risk as much as possible in the economy,to provide the economy with necessary liquidity,to realize the wealth effect due to economic growth and to efficiently allocate resources.