The Chinese government's spendingon HIV/AIDS has increased dramatically in recent years.However, it only accounts for a part of the total resourcesdedicated to HIV/AIDS. The fragmented nature of HIV/AIDSfinancing makes it difficult to register the flows of fundsin a holistic and useful manner. More importantly, there arequestions over the extent to which increased resources forHIV/AIDS have been allocated and utilized in an equitableand effective manner in order to achieve the intendedoutcomes specified in the Second Five Year Action Plan forHIV/AIDS Prevention and Control (2005-2010). This study wasdesigned to gain a better understanding of possibleimpediments to an effective local HIV/AIDS response. Itmainly focused on: (a) assessing different aspects ofHIV/AIDS financing such as sources of financing, HIV/AIDSrelated services and their providers being financed, andbeneficiaries; (b) estimating householdsout of pocketspending on HIV/AIDS; and (c) identifying bottleneckspreventing the effective and equitable utilization ofexisting HIV/AIDS resources.