The handling of private enterprises in China revealed clear policy signals. The general characteristics of the enterprises that are taken over are: (1) companies often have high debt expansion that causes problems; (2) intentional supervision evasion; (3) imperfect corporate governance structure; (4) high debt management that leads to fragile balance sheet with the changes in the market, regulatory and policy environments, which will expose the debts; (5) companies that are keen to involve in the finance and have multiple financial licenses.