Chinese-style financial decentralization is an important part of Chinese-style decentralization, creating China’s economic growth miracle together with fiscal decentralization. With the advancement of China's financial liberalization, the development of local finance, and the increase of regional financial risks, the issue of financial decentralization has become increasingly prominent. However, the existing literature lacks systematic research on financial decentralization. Therefore, this article systematically studies the research direction and achievements of Chinese-style financial decentralization based on the combination of China’s economic practice for deep and systematic research on this issue so as to provide the reference for deepening financial system reform. Firstly, the concept and connotation of financial decentralization are put forward based on the related academic research evolution and the characteristics and performance of financial decentralization are clarified. Secondly, stages of the development of financial decentralization after the reform and opening up are divided and explained around the financial and fiscal system reforms and changes. Thirdly, based on the basic judgment that financial decentralization is the result of the integration of "top-down" mandatory institutional changes and "bottom-up" induced institutional changes, the natural cost-benefit advantages of the economic resources are obtained by using financial methods on the basis of traditional analysis framework, and the generation logic of Chinese-style financial decentralization is analyzed and expanded. In addition, the generation mechanism of its two economic effects, including the economic growth effect and financial risks effect, is summarized and explained. Finally, this paper prospects its future research direction to provide feasible direction and ideas for further broadening and deepening its research.