This paper argues that,in certain hi storic situation in China,it was a ki nd of institutional innovation for universities to establish hi -tech e nterprises and own their property rights.Under present new circumstances,how-ever,property right arrangement of those enterprises needs change in order to ensure a sustainable developm ent of the enterprises.The interests of university should be protected during the change of property arrangement.Those enterprises should continue to be th e technology incubator for the university and improve their business man agement.