In the ideological and theoretical level, neoclassical finance almost keeps pace with the rise of financial capital, and it also begins to revive and occupy the mainstream. In fact, the three separation theorems of finance are proved to liberate the freedom of financial factors, and provide theoretical legitimacy for financial capital to “fly above the clouds“.Fisher's separation theorem, which separates production and consumption, gives entrepreneurs the freedom to make production decisions independently through the intertemporal allocation of credit market. Two-fund separation theorem, which separates asset portfolio and individual risk preference, gives fund managers freedom. Modigliani Morton theorem, namely MM theorem, separates the capital structure from the company value, and gives the company's financial director freedom.The essence of financial supply-side structural reform is to release the free nature of production factors. In order to solve this problem, the structural reform of financial supply-side should focus on restoring and reshaping the nature of free allocation of factors of financial enabling entities. At the same time, it should also respect the nature of pursuing profits of finance itself, reduce the crowding out of effective financial resources by the financialization of non-productive activities, and reduce the disturbance of national credit and policy banks on credit market activities, so as to make the market truly prosperous and let market play an important role in the allocation of credit resources.
