Recently, when Anbound researchers interact with foreign economic sectors, it is noticeable that the merger of Shanghai Baosteel Group Corp. and Wuhan Iron & Steel Group Corp has received considerable attentions. Regarding this, we believe that the merger of the same type of state-owned enterprises (SOEs) will not change its system and mechanism, therefore the efficiency and competitiveness will not necessarily be improved. The merger of SOEs will still happen in the reform, as this is the easiest reform action to be carried out, but this action also has other problems. If state-owned enterprises wish to have real breakthrough, mutual funds should be adopted for the reform, and market-oriented way should be used.