Since the reform and opening-up began, Wenzhou economy development took the lead in the province and even in the country. However, in recent years there has been more and more controversies and queries on economy of Wenzhou, or even the opinions that Wenzhou economy is going to end. Hence, this paper attempts to analyze the reason why the status quo of Wenzhou development will be considered through the analysis of Wenzhou's situation of the economic development. The paper starts with the characteristics of massive economy to analyse the capital flight caused by massive economy that results the tendency of industries hollow in Wenzhou economy. Then, based on McKinnon's theory of financial rep ression, the paper illustates financial restraint on economic development in Wenzhou. Therefore, Wenzhou's problems of economic development are concerning with the industrial structureand the traditional culture. To address the issue of economic development in Wenzhou, several suggestions are concluded at the end of this paper.
KEYWORDS： Economy of Wenzhou ， Capital flight，
Financial Repression
