The state-market relationship has generated heated debate for decades. The success or failure of market performance invariably triggers a discussion on the necessity of government intervention. The reasons for government intervention in markets may also change during economic cycles. This article examines the interactive relationship between the Chinese state and the financial markets. Using the bank-issued wealth management product market in China as a case study, this article examines and comments on the dynamic state-market relationship in China. The state can intervene in markets through market participation, legislation, and/or supervision. The state may rely on one particular measure to intervene in markets or use all three measures depending on the changing market conditions. The development of the bank-issued wealth management product market and its evolving regulation indicate that the Chinese state has shifted its measures of intervention from direct market participation to government oversight of the financial market.