Brief Introduction

After 40 years of the Reform and Opening, China's financial sector has changed from a traditional, backward, central planning financial system to a market-oriented financial system with some characters of the modern financial system.These irreversible and profound changes exist not only in the aspects of the scale and structure, but also in terms of the functions and formats.This research report tries to summrize the trend of the transformation and development of China's financial sector, and describes the modern financial system that China is going to build to match the great economy of our country in the furture.This research report clearly states that the modern financial system that China will build is a market-based financial system, characterized by highly market-oriented, technology-based, opening to the outside world and riskdispersive.Also, it can be well-functioning in financing, wealth management, payment and financial resource allocation across time and space.In the furture, an opening and transparent capital market with a sustainable growth expectation will become an important cornerstone of the modern financial system.

As most of the research reports in the past years, this research report is composed of three parts: introduction, theses and market research.The introduction reviews the development and transformation of China's financial sector in the past 40 years.Thesis 1 is about the basic characters, functions and structure of the modern financial system.From Thesis 2 to Thesis 10，they describe the transformation, changes and functions of commercial banking, capital market, money market and other component elements in the modern financial system.Thesis 11 and Thesis 12 analyze the connection between the modern financial system and the real economy, and also the uncertainty on the road to our final goal.The market research analyzes the main features and trends of capital market from 2018 to 2019 on the perspectives of fundamentals and technical indicators.