Over the past two decades, China experienced a gradual transformation from a central planning economy to a market-oriented economy and cultivated the largest manufacturing sector in the world, which involves a drastic reallocation of labor and capital across firms and across industries. We provide three chapters to study the resource reallocation within the Chinese economy from the late 1990s. In Chapter 1, we study what determines overall sizable misallocation within the Chinese manufacturing sector and explores its evolution. In Chapter 2, we study how the ownership reform of Chinese state-owned banks affects their credit allocation to nonfinancial firms. In Chapter 3, we study how real estate booms could crowd financial resources out of the manufacturing sector and hurt manufacturing firms.