The global economy in 2018 has been approaching the top of the cycle，experiencing the recovery since 2016. The downward pressure of China’s economy becomes visible in 2018. And，promoting the total factor productivity through the system reform is the optimal choice，that achieves the sustainable development of the China’s economy. In finance，the growth of China’s money supply continues to slow down，the decline of the off-balance-sheet financing narrows，the scale of increasing social financing has stabilized，the financial loan grows rapidly，the asset quality of listed companies continuously improves，the interest rates of the currency market fall significantly，the stock market falls in volume and price，the bond market default risk highlights，the depreciation of the RMB has increased and foreign exchange reserves showed continuous negative growth. The slight downward of China’s economy in 2018 will be conductive to the inherent law of its economy，regardless of the long-term trend or short-term volatility angle. Many factors affecting the monetary policy are intertwined，including the relatively loose financial condition，supply-side reform，and the financing dilemma of real economy. Therefore，the monetary policy is expected to maintain prudent and neutral，and focus on improving the transmission mechanism. In addition，a proactive fiscal policy is expected to be achieved through the tax reduction and increasing spending.