Based on the stylized facts of financial crises and systemic risk accumulation,this paper constructs a new financial imbalance index(FII) from the perspective of endogenous financial cycles and assesses its application in China 's macro-financial analysis.The results show that the FII is not only an effective index to detect financial imbalances in China's economic cycles,but is also more accurate than and plays more of a leading role than conventional indicators,such as the consumer price index