As China’s financial system has become more complex and integrated, calls have intensified for structural reform. In particular, many commentators have called for China to move towards the twin peaks model of financial regulation along the lines of the experience in Australia. This paper explores the insights that China might glean from the experience in Australia and other twin peaks jurisdictions and suggests certain choices that China might make if it decided to adopt the twin peaks model. Although such a decision is by no means certain and other options are perhaps more likely, at least in the short term, it is of critical importance to ensure that each option is fully understood before it is either ruled in or ruled out. This paper sets out to contribute to a broader understanding
of the twin peaks model and Australia’s experience for this purpose.