China has made significant advancements in its financial sector over the past 40 years, moving from a planned economy to a modern market economy. This progress includes the growth of institutions, changes in market structure, and the development of new financial products. These changes have been driven by the demand for financial services from the government, businesses, and individuals during a period of rapid economic growth. The use of advanced technology, especially in information technology, has played a crucial role in enabling these innovations. Financial innovation in China has had both positive and negative impacts on economic efficiency, financial stability, and social equality.