Economic bubbles are an extreme form of structural imbalance. They are common in economic transformation periods.

China's capital market has been a bit chaotic this year, reflecting the economic transformation is taking place, with financial risks are appearing.

Although disagreement on the definition of the scope of China's "shadow banking" exists, the Chinese government has paid close attention to its latent risks.

This report is based on the understanding of the strategic significance of China's urbanization and the knowledge of the relationships between urbanization and industrialization, urbanization and sustainable economic development, urbanization and agricultural industrialization, and urbanization and the construction of a new socialist countryside.

China is advancing its urbanization at a fast speed. It is estimated that by 2020, the urbanization rate will reach over 60 percent from 52.6 percent in 2012, triggering off a huge financing demand.

This report analyzes the US version of Basel regulatory standards made by the US banking regulators and discusses the main reasons why it was opposed by small and medium-sized banks and offers suggestions to the construction of the Chinese financial regulation and supervision system.