| SEO experienced extraodinarily low efficiency in China. Many researchers have studied SEO but still cannot find a usefull method to solve it. Therefore, this paper tries to study SEO from new respects, New-institutional Economics and Rent-Seeking Theory.Institutions are the most important of all economic elements. It determines what people do and how they do, It also determines the resources allocation in the process of SEO. Malfunctions and defaults of SEO leave much room for rent-seeking which ruins the effects of China's stock market.Because of the malfunctions of SEO institutions, Rent-seeker can gain directly unproductive profit through SEO. Two models are introduced in this article to explain the mechanism of SEO rent-seeking. It can see through the models and the analysis, rent-seeker have the need to pursue direct unproductive profit.Three mains ways of rent-seeking in the process of SEO, earning management, price manipulation and unfair related trading, play important roles, which is emphasized in the article. As is studied, Rent-seekers can gain informal profit through these ways.Rent seeking is extremely bad to the function of security market. If not properly handled with, it may destroy investors' confidence and cause economic depress. So it is time to get rid of it. At the last part of this article, some suggestions are discussed to reduce SEO rent-seeking.
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