Financial repression usually exists in developing countries.By nature,it is like a hidden tax and can liquidate public debt of the government effectively.The policy of financial repression will likely hinder financial deepening,negatively influence the building-up of efficient and inclusive financial systems,and eventually harm sustainable economic growth in the long run.The fine legal infrastructure plays an important role in financial deepening and development.In China the major measures to reduce financial repression and improve the legal governance in fmance are the following:the strict respect and protection of private property rights,including the obligation rights of the common depositors against the banks and the shareholders' rights of the common investors,the respect and protection of the contract freedom and contract enforcement,the sequential openness of financial market entry and introduction of the principle of free and equal competition in the fmancial market,and the improvement of the judicial system to increase the adaptability of Chinese law,such as the strengthening of judicial independence and the establishment of case law.