This study traces financial development after World War II in Japan and provides insights into the recent financial development in the Chinese market economy. We examine the main banking system of Japan and the keiretsu loans. Moreover, financial liberalization toward the “bubble economy” is traced owing to the high economic growth era. Moreover, research is then concentrated particularly on the causes and results of the dual bubble burst in both the real estate and stock markets. The financial restructuring in the banking system after the bubble burst in Japan will provide lessons for financial control to the real estate and other asset markets in China.