Financial system is a “ blood circulation” of country economy. Since China is attempting to establish modern economy ( within authoritarian political system though) the creation of institutions and regulations of the system became crucial. The system as such is enormously complex and requires sophisticated structure of institutions and flexible rules. Major institutions are : central bank and commercial banks, policy banks, international banks, insurance system, money markets, capital markets operating within stock exchange system and outside it and many others.Regulatory bodies are crucial to monitor and react when issues occur. Thus there is growing role of financial regulators,central bank and international flows of money Creating transparent regulations requires to determine dependency rules and legal standards monitoring and enforcing governance towards projected directions. The paper briefly presents major achievements and still existing issues that China has to cope with.