The complete liberalization of trade in financial services does not require the complete opening of the capital account, so fulfilling China's commitment to open financial services will not greatly conflict with the current capital management system. However, the liberalization of trade in financial services also has an objective impact on capital flows, such as its scale and stability. Through these variables, the liberalization of trade in financial services challenges China's current exchange rate system. China can't give up the independence of monetary policy. Therefore, it is the best choice for China to choose the right time to change from the pegged exchange rate system to the floating exchange rate system which is really determined by market supply and demand.