The paper looks at how different types of capital formation affect economic growth. It finds that the right balance of foreign, financial, and real capital is crucial for growth. Too much or too little of any type can harm the economy. When the market controls the process, capital levels adjust to support growth. In China, deepening financial capital and the ratio of foreign capital to total capital help economic growth. However, increasing real capital and the ratio of financial to real capital can have a negative impact.