The purpose of this paper is to show that financial reforms can be endogenous responses to economic growth and changes in political constraints rather than autonomous policy tools of the authorities. The endogenous characteristics of Chinese financial reforms are identified as follows. First, this paper takes a close look at endogenous aspects of Chinese financial repression policies. The endogenous characters of the financial repression policies explain why future financial liberalization in China may follow an endogenous path. Second, this study finds that recent developments of legal frameworks for financial markets have been institutional responses to macroeconomic imbalances and increased demands for property right protection. Finally, this paper argues that the lack of market infrastructure and various political constraints are major obstacles for capital market developments. As the economy grows further, the fixed costs associated with the establishment of market infrastructure will be mitigated.