There　are　a　lot　of　Literatures　about　financial　innovation,　including　academic　studies　and　empirical　studies　But　recently,　the　research　of　financial　innovation　is　at　the　turning　point　The　direct　reason　is　the　happening　of　American　subprime　mortgage　crisis　At　the　same　time,　some　people　are　doubtful　of　the　effect　of　financial　innovation　They　thought　that　we　should　limit　the　development　of　financial　innovation,　because　there　is　too　much　potential　risk　caused　by　financial　innovation　in　market　which　will　affect　the　stability　of　development　In　our　opinion,　they　are　not　correct　Reducing　risk　by　limiting　the　development　of　financial　innovation　is　not　a　good　way　Especially,　China　should　continue　to　develop　it　to　improve　our　competence　in　international　financial　market　The　paper　study　on　the　Status　quo　of　western　countries　and　Status　quo　of　Chinese　study