The process of restructuring China's banking industry and financial openness has been faster than ever before in order to modernize the banking system and increase the efficiency of the financial market since the entry into WTO for China. Recent dramatic changes in financial market are including: the privatization of State-owned banks and the openness of Credit Market, the openness of China's Stock Market and QFII, QDII and the deregulation of capital outflow control, fast growth of FDI, huge amount of speculative capital inflow and the revaluation of Chinese Renminbi (RMB), and the Stock Index Future is innovating. Financial reforms and openness have also resulted in some problems such as stock market prices bubble and financial instability. Chinese government is very active to deal with these issues. There is no sign of financial crisis in the near future in China.