Bazhong，a city in Sichuan province，has actively explored innovative models of financial poverty reduction. The government utilizes the law of the market to activate the leveraging role of its financial resources which in turn attracts private and social capital to participate. Through the establishment of effective interest-sharing and risk control systems，Bazhong has witnessed the formation of a poverty alleviation mechanism characterized by the sustainable development of government，banks and farmers. As this mechanism provides incentives for the poor households to seek employment and entrepreneurial opportunities，and contributes to the diversified industrial development，it gives targeted poverty reduction a new twist.