This article analyzes the relationship between financial intermediary development and economic fluctuation in thelast 50 wars in China. It was found that a steady and long-term relation existed between these two variables, and that differentaspects of the development of the financial intermediary system had different effects on the economic fluctuation. The improve-ment of the intermediary’s efficiency can repress the economic fluctuation, but the increase of financial intermediaries canintensify the fluctuation. On that basis, some suggestions about the development of the financial intermediary are proposed inthis essay. This article analyzes the relationship between financial intermediary development and economic fluctuation in thelast 50 wars in China. It was found that a steady and long-term relation existed between these two variables, and that differentaspects of the development of the financial intermediary system have different effects on the economic fluctuation. The improvement-ment of the intermediary’s efficiency can repress the economic fluctuation, but the increase of financial intermediaries canintensify the fluctuation. On that basis, some suggestions about the development of the financial intermediary are proposed inthis essay.