Although private equities play a crucial role as capital providers in SOEs reform but ANBOUND think tank scholars believe that the private equity engagement in SOEs reform won't be that simple. Some SOEs bring in private equity for the interest of a small group of people which causing a great losses to state-owned assets. Under the pressure of debt crisis, some local SOEs might be privatized however it is not that easy to execute amongst the large central enterprises. ANBOUND proposes that "mutual fund model" is more suitable for China’s SOEs reform rather than the introduction of private equities.