However, we should be aware that the existing financial legal rules were established in the development of emerging markets and the transitional period of economy. With the deepening reform of China’s financial system, the accelerating opening-up and the enhancing innovation of the financial sector, the existing legal framework can hardly satisfy the changing requirement of the financial sector.
Especially, we need to make an overview of the basic legal environment that our financial sector relies on and improve the research on laws for financial innovation (including system innovation, institution innovation and product innovation). Currently, three kinds of financial risks stand high in China’s financial system, which is to some degree related to the inadequacy and incompatibility of our legal rules.