In the new round innovation of state-owned economy, local governments issued innovation policy of state-owned capital in succession: State-owned capital realizes withdrawal from competitive fields via private and foreign capital's reconstruction of state-owned enterprise in about 2 years. Based on a review of capital ownership structure of Chinese enterprises this paper analyzes the unfeasibility of the aforementioned policy. The author considers that pushing the withdrawal of state-owned capital must bring on state-owned capital big loss when the regulation excludes the resident from state-owned capital transaction market, who is the main supplier of capital. While LBO and MBO can not make non state-owned capital have the power, over which take the withdrawal of state-owned capital.