China's financial markets did well after the 2008 global financial crisis. The country's banks were in better shape than those in Europe, the US, and Japan. China's success in modernizing its banking sector and financial markets may not be solely due to its legal and regulatory system. Some experts think it's because of China's top-down Party-state model. The current financial regulatory system in China is still restrictive and government-dominated. To improve financial markets and the economy, more market-led reforms and market expansion are needed.