Since the introduction of reform and opening-up policies, China has made great progress through a continued focus on the ‘troika’, the opening up of the financial sector, a market-oriented exchange rate regime, and the relaxation of foreign exchange regulation. In spite of this progress, the relative openness of China’s financial sector remains fairly low. Foreign financial institutions have a relatively small market share in China and still face restrictions regarding ownership and scope of business, the breadth and depth of financial market is to be further developed, and institutional environment requires further improvements in areas such as accounting, auditing, and taxation. In this next phase of development, China should continue to pursue coordinated progress in the ‘troika’, further open up financial sector through adopting Pre-establishment National Treatment (PENT) and a negative list, and step up risk prevention in the meantime.