Abstract: Property right is a series of economical and social relationships to determine one’s share of rare resources.The production incentives in the economic development of one country are decided by its ownership and property right arrangement.There are two purposes in transition: one is to turn plan economy into market economy and finish the system transition,the other is to rid those unfavorable economic factors to the long-term development caused by the surpassing strategy under the old system,to reduce the unreasonable transaction cost,to increase production incentives of micro-economy,and to realize the transformation of development mode.In realizing the transition purposes,the reform of property right is the foundation,and the construction of market system is the guarantee.Cost-saving and benefit-increasing in the process of transition are largely due to different reforms of ownership.

Key words: property right, transformation of development mode, transition cost and transition benefit