This paper uses the incomplete information dynamic game equilibrium analysis and the reversion induction to solve the Nash equilibrium, mainly analysize the interest balanced mechanism of full circulation. It found: before full circulation it has the widespread problem of adverse selection in M & A of listed companies. Especially in the state-owned enterprise merger and acquisition it is more serious; after full circulation the pricing mechanism tends the marketability and the purchase side favors the value support strategy. Adverse selection problem is to be effectively controlled and the merger and acquisition efficiency can improve.
