The pillar of wealth creation in China is the real economy especially manufacturing. However in the recent years, the mismatch of China's financial resources allocation and wealth creation is getting more serious. ANBOUND research team points out that the distortion of China's financial resources allocation must be corrected and the country’s macroeconomic policy should be adjusted accordingly. The lending ideas and risk management of the large state-owned banks are far from the real marketization. This is also the main reason why manufacturing as well as the small and medium sized enterprises are not favored by banks and intensifying the financial dilemma.