In combination with the data of loss-making listed companies in manufacturing industry at capital market in 2008-2010, this paper analyzed the characteristics of loss of listed companies. Major reasons include the blind investment of management personnel, low operation and management level, blind pursuit of diversified operation, improper stock right structure, weak supervision of government, and imperfect delisting system. Finally, it came up with some countermeasures, including improving quality of management personnel, management personnel selecting proper investment projects, strengthening internal management of enterprise, implementing effective asset rearrangement, setting up effective incentive and restrictive mechanism, bringing into play regulation function of banks, improving delisting mechanism, reducing centralization of state owned stock right, and establishing and improving market information disclosure system.