This chapter examines the legal and institutional regulatory framework for China’s financial markets, and evaluates how China may need to restructure its regulatory regime in order to keep up with market developments. The chapter first provides a detailed discussion of the current Chinese financial regulatory framework, and then identifies its major structural problems. In search of an appropriate agenda for reform of China’s financial regulatory structure, it conducts a comparative analysis of financial regulatory structures in overseas jurisdictions, as well as a contextual consideration of China’s local conditions. Finally, it discusses the recent developments and their implications for the future prospects of China’s transition to a Twin Peaks model of financial regulation.