China is transforming into a viable market where only those companies which can carry out transparent and competitive management can survive, due to its steeping and strengthening rise of wages and labor management. Pre entered SMEs to Chinese market which has enjoyed the advantage of cheap labor, are in trend of weakening of it competitiveness and appealing difficulty of management activities, where as recent entering SMEs with well preparation and good command of localization strategy are different from its purpose and behavior. In addition, Chinese market entering SMEs are facing fundamental changes within a diminishing deal from domestic financial transactions to the growing financial transactions between the parent company and subsidiaries in local. However, unlike the changes in the Chinese market's business conditions and entering SMEs behavior, domestic financial institutions trying to enter Chinese market are still facing an insufficient basic infrastructure to carry out the local businesses. For a mean time, although there are many obstacles of Chinese market, it is inevitable for domestic financial institutions to strengthen operations of Chinese business in near future in order to support the domestic companies operation in China. However, China a market with opportunities as well as threats, it is recommended to put priority on promoting expansion strategy, but also with a cautions approach.