Reviews the historical process of the financial system reform and development of China. This book introduces the background, implementation effect and experience of major events about the central bank system, financial macro-control, foreign exchange management and foreign exchange market, banking reform and supervision, capital market, insurance market, financial supervision and financial opening up and other financial areas. It thus reveals the basic path of China's financial reform, development and evolution, and explores China's path of financial development and reform in line with the national conditions. Through an in-depth study of more than 40 years of China's financial system reform, this book explores the laws of monetary and financial operation and development during the reform, the path of which is roughly as follows: breakthrough of the financial system's forbidden zone (restoration and separation of national specialised banks; establishment of a central bank; opening of financial markets; enterprisation of professional banks; commercialisation of specialised banks; establishing an indirect financial regulation system; strengthening and improving the financial supervision system) hence, providing constructive advice and reform proposals for the national macro policy-making departments. 1. This book reviews the main history of the reform of China's financial system and analyses the starting point, objectives, sequence, characteristics, ways of advancing and the logic behind the reform of the financial system. 2. This book breaks down the traditional financial system and establishes, step by step, a diversified financial system that meets the requirements of the development of the socialist market economy. 3. This book provides an overview of the development process of the major areas of the financial industry and an outlook on the future direction of the financial system reform, hoping to provide useful reference and lessons for readers who interested in the financial undertakings of China.