Abstract: As a bridge between the government and the market, intermediary organizations in China have been prospering in recent years. It is necessary to re-examine the supervision and regulation of intermediary organizations under the prerequisite of market mechanism. The researcher found that, failure of supervision of intermediary organizations in China is mainly seen in target deviation, inefficient and weak supervision, and lack of measures etc.. The lack of relevant legislation and effective administrative regulation are the main reasons. In the premise of the market decisions on the allocation of resources, the author suggests improving relevant laws and regulations, clarifying the relationship between government and intermediary organizations, introducing an integrated regulatory system, regulating self-regulatory mechanisms and internal governance structure of intermediary organizations so as to prevent the failure in intermediary organization supervision in China.

Key words: market mechanism, state intervention, intermediary organizations, moderate regulation, multi-governance, selfregulatory mechanism