From The Statements Of Assets And Restructuring Of China's Securities Market System Defects

China's security market pushes forward the reform of state-owned enterprises and betterment of modern economic system in all round way. Nevertheless, some disharmonies show themselves gradually in security market with the deepening of economic reform. And Financial Makeup Oriented Asset Recombination (FMOAR) is one of the factors disturbing the regular operation of security market and hindering the establishment of modern corporate system.FMOAR refers to the mushrooming of account profit in short term mainly by affiliated transactions, the principal purposes of which rest with getting out from "PT" or "ST" group, holding the rights of allotment of shares, raising stock price and maintaining the qualification of being listed instead of optimization of corporate structure. However, administrative methods may not be effective in controlling FMOAR for it hurts the interests of many related parties. Best ways can only be brought forth by grasping the institutional essence of FMOAR after full investigation into the behavioral intention of related parties.The article gives a full investigation of FMOAR by importing the theory of rent-seeking and digs out the institutional factors behind FMOAR, which are unfair listing system, sole magnitude of state-owned shares and over-intervention of government. Managerial levels of listed companies are intended to seek rent under such institutional circumstances while natural profit-seeking activities are interrupted. Therefore, institutional transition in certain range and establishment of new institutional foundation suitable for modem economic system are urgently demanded to control the prevailing of FMOAR.