Abstract
At present, the “grey rhinoceros†in China’s financial sector mainly exists in the real estate bubble and enterprise debt accumulation. In order to release the financial risks accumulated in the past, on the one hand, we should weaken the economic growth indicators, resolve to eliminate the zombie enterprises, neutralize the monetary policy and change the incentive mechanism of the officials’ assessment. On the other hand, we should also encourage the ideological emancipation to stabilize the expectation and further promote streamlining government and delegating authorities.