City investment companies in China are now being forced to speed up the transition. Since 2017, a total of 33 city investment companies have withdrawn from the government financing platform, an increase from 25 in 2016 and from 5 in 2015. The historic mission of city investment companies is not over but rather it is changing. Under different environments, city investment companies will seek different models of transition. The basic direction of transformation should also be market-oriented. With the government reform, China should narrow down the government and expand the market in the future, which means narrowing down the functions and powers, and strengthen the market-oriented space and make more use of social resources.