This chapter reviews the development process of the poverty reduction by means of financial mechanism in China，both in public policies and practices. The financial tools for poverty reduction had been evolving with China’s economic development and poverty reduction practices in the past 30 years，significantly supported the social and economic development in the poor areas，as well as the poor people out of poverty. The coming challenges for the financial mechanisms in poverty reduction in China include the balances between commercial interests and social responsibility，fiscal and financial mechanisms，credit to the poor and inclusive basic financial services，targeted poverty alleviation and overall economic development，etc.