ABSTRACT
In an era of ‘fi ctitious economy’ or ‘fi nancial deepening’, no economic transformation or reform can be truly realized before a fi nancial reform being effectively completed in the system.1 It is true to say that fi nance has become the core section of a modern economic system. China’s economic reforms had started by the time the concept of ‘fi nance deepening’ had just gained its infl uence and has progressed through out the period in which the practice of fi ctitious economy has reached the peak and begun to send warnings of how destructive it can be when the balance between fi ctitious economy and real economy is broken.
