Mr. Li Yenning, known as the advocator of shareholding system reform, is the first scholar that proposed and studied the shareholding system since the reform and opening-up of China. This book is a research work on the origin, development and formation of Mr. Li’s thoughts on the shareholding system. It discusses the relationship between market economy and inflation, income distribution under market economy, government regulation in market economy, market economy and market rules, etc. It also examines market economy and reform of property rights, circulation of state-owned shares, the role and standardization of securities market of China, etc. This book emphasizes that the core issues in building modern market economy are the restructuring of property rights system and the standardization of market players’ behavior, and highlights the role of shareholding system reform in the establishment and development of modern market economy.