Abstract: The empirical analysis was implemented with the linear regression model under classical assumptions and VAR model of the time series. The result of empirical analysis shows that the allocation of Chinese financial resource has been upgrading the “quantity” of its economic growth rather than improving the “quality”， furthermore， with the constraints change of Chinas economic growth， the problems of Chinas financial resources allocation， such as structural disequilibrium and “twotrack” price， which originated in government monopoly， became more and more prominent. As a result，the marginal output of China financial resources began to decline. Therefore， the effective system arrangements should be carried out to transfer financial rent from government sectors to private sectors， which can really incite financial innovation and technological progress. The ultimate policy objective is to implement marketoriented allocation of Chinas financial resources and enhance its total factor productivity.

Key words: financial resources, financial restraint, marketoriented allocation