At present,there are still many systemic problems in the governance process of state-owned enterprises in China,among which the most core is that the institutional arrangement of state-owned Equity is not reasonable enough.On the basis of in-depth exploration and analysis of the root causes of state-owned economic problems,this article reveals the significant historical mission and functional role of Equity Exchange institutions(Equity Exchange market)in promoting the reform of state-owned assets and enterprises,providing necessary theoretical basis and direction guidance for the next step of improving the reform of state-owned assets and enterprises and building a multi-level capital market.