In November 2016，the credit default swap officially became a tool of credit risk mitigation in China. Ten institutions including five big Banks invested about 300 million Yuan and carried out 15 credit default swap deals for the first time. It is necessary to apply credit default swaps in China，but the demand for regulation is also imminent. Based on the development of the foreign credit default swaps and the corresponding regulatory policy，combined with credit default swap risk，we put forward related policy suggestions on regulation of credit default swaps，including perfecting derivatives market legislation，strengthen information disclosure and improve the credit rating system and so on，in order to promote the healthy development of the credit derivatives market.