Competitions in China's insurance market today have five major characteristics.

To remove the financing obstacles faced by small and medium-sized enterprises, developed nations often adopt a variety of strong measures to narrow down the information gap between banks and enterprises.

More categories and higher risks are seen in China's insurance industry in recent years. Generally speaking, they are system risks such as the nonstandard financial market, the archaic supervision and monitory model, and the low competitiveness in the whole sector.

The inadequate financing for small enterprises is due to the information gap between the enterprises and the banks.

The same trust business entrusted by clients to respective trust companies and stock companies are under different policy regulations.

China Banking Regulation Commission issued the "Regulations on Rate of Capital Abundance for Commercial Banks" in March 2004.

To effectively dissolve the institutional risks in China's stock market, efforts should be put into the following areas.