The liberalization of financial services is an important part of WTO members’liberalization of services trade. The Chinese government has been actively and steadily promoting the liberalization of financial services through the free trade zone strategy. In order to ensure that parties have sufficient regulatory sovereignty to prevent financial risks and maintain financial stability, most of these FTAs contain prudential exceptions. The relevant rulings of the WTO Argentine Financial Services case help to clarify the abstract ambiguity of the prudent exception clause. The China free trade agreements should be used as a guide to optimize the prudential exception clause to enhance the credibility of the financial market opening commitment and the law applicable stability.