Abstract: On July 20th, 2010, The Dodd-Frank Wall Street Reform and Consumer Protection Act (Financial Reform Act) was signed into law by President Barack Obama. The Financial Stability Oversight Council was established according to this new act, and the Financial Stability Oversight Council has a clear statutory mandate that creates for the first time collective accountability for identifying risks and responding to emerging threats to financial stability. China needs to improve a lot on the establishment of such a council and the provision of its duties. This thesis is based on the latest financial reform act and the actual conditions of China, and the authors give some advice accordingly:to establish a rather representative financial stability oversight council, or authorize the responsibilities of financial stability oversight to the current financial oversight coordination mechanism.