Rent-seeking, Adverse Selection and Reform of State Enterprises

Over a long time,state enterprises live in an abnormal institution.It gives rise to adverse living selection mechanism and adverse investment selection mechanism. For this cause ,not only themselves are inefficient, but also bring a large outside unfavourable effect. What leads to the result is that they haven't resolve the rent-seeking problem from beginning to end. To reform the ownership separately can't help to reduce the rent-seeking actions.On the contrary, it has made more rent-seeking chances. After the Sixteenth National Congress of the CPC, the key of state enterprise reform is whether it can restrain the rent-seeking actions. So before we reform the ownership of state enterprises, we should build a management mechanism of incentive compatibility , and the transferring of ownership must be under the marketable rules, at the same time , it should be supervised strictly. 