In the opinion of ANBOUND's visiting economist Zhong Wei, SOE reform now has various measures, of which seldom really works. SOE reform, especially local SOE reform, should do as follows. First, sell state-owned stocks and let foreign and private capital flow in. Second, SOEs should give up monopoly of industries which they aren’t good at. Third, reform the management structure and salary system. Otherwise, it’s just a fake reform which cannot let the market mechanism to play a critical rule and will ruin the SOEs sooner or later.