Credit Default Swaps（CDS）This financial instrument officially landed in China in September 23，2016. In this paper，the author analyzes the CDS in mathematics and jurisprudence，and through the study of its impact on the Chinese market，and the comparison between China and the United States found that China’s financial innovation requires CDS active participation，and that the “credit default swap” operation should first return Its insurance properties，so that it is used to transfer China’s overseas investment risks，that is used for “The Belt And Road（B&R）” direction，this is what the CDS in China’s strategic direction and should be intended. Looking ahead 2017，China has the price of education pricing bubble superimposed on the trend above the house price. That is，CDS may become a future promoter of the first-tier cities school district house prices. Therefore，the next few years，the use of the “credit default swap” must be prudent，to be targeted rather than aimless. The In principle，CDS is no longer suitable for the use of domestic bond market to create and derive financial leverage；its development direction should be turned from the domestic market to overseas.