China's iron and steel industry has been deeply entrenched by excessive production capacity in the first half of this year and at present is still struggling to get out of the plight. ANBOUND senior researcher He Jun suggests three ways to adjust China’s current iron and steel industry: first, China needs to expand its overseas investment because of its excessiveness in China’s domestic market and the megatrend of structural adjustment; second, it is inevitable that China will have a decreased demand of iron and steel and international markets’ demand for iron and steel will not undergo dramatic increases, either. This means that the merging and reorganization of China’s iron and steel industry will be bound to happen; third, the best reform path for asset management is to reform SOEs via mutual funds.