Investigating results indicate that most collateral companies benefit from the special policies given by government to resolve financing difficulty of middle-small-sized firms, but those companies covertly carry out other non-collateral occupation. Analysis based upon institution transformation suggests that single collateral operation can not give enough bread to collateral companies, so collateral company would necessarily depart from the main operation and chase the potential profit in the process of institutional transformation, by undertaking profitable items. Such an institutional transformation is at the beginning step, i.e. the initial acting group has come into being and the operational program directing every step of institution transformation is in the air. So government is advised to direct collateral company to try their best to take shape their core-competitiveness in the process of operational expansion.