The effect of China's SOEs Reform has always been a market focus. ANBOUND research team believes that if SOEs reform can be truly deeply promoted, it will surely have a great impact on Chinese economy. However, judging from the real implementation, the market shouldn't be too optimistic about the reform. Chinese SOEs are special interest groups without limitation of office terms. Their reform needs marketization methods. The current reform led by SASAC (State-owned Assets Supervision and Administration Commission of the State Council) is just a matter of form and its prospect isn't very promising.