As induced institutional innovation with Chinese characteristics, specialized markets provide a shared and low-cost transaction platform for rural as well as small- and medium-sized enterprises. China’s Specialized Markets is the first comprehensive discussion on the titular subject. The authors use economies of scale, division of labor, specialization economies, and new historical institutional analysis (HIA) to examine the factors driving the rise of specialized markets in different areas of China and to reveal the internal mechanism behind the expansion and evolution of these markets. By using theories of transaction cost, public choice, and so on, they also explore the internal governance and operational mechanism of specialized markets as well as their interactions with industrial clusters and local governments.