When the Hu-Wen administration took power in spring 2003, it promised an ambitious two-stage program of administrative restructuring followed by decisive reform policies. While the first part of this program has been realized, the second has not. It would have been reasonable to expect a significant acceleration of economic reform and institutionalization during 2004. Instead, a general trend of slow and sometimes disjointed policymaking has emerged. This phenomenon is evident in the three most important areas of financial and macroeconomic policy: restructuring of the banking system, reform of the stock market, and the conduct of macroeconomic policy itself. In none of these three areas has decisive action been forthcoming, as policymakers have instead focused on redistributive policies, such as those affecting agriculture and regional development, a pattern of policymaking that presents numerous challenges and dangers.