Abstract: In this paper,the policy model corresponding to the two policy objectives of market expansion led by reformed State-owned enterprises and risk control of securities market has been constructed.With dynamic game theory,it is proved that under the condition of complete information if attention is given to the two policy objectives at the same time,it will inevitably result in the dynamic inconsistency of the Government’s securities market policies.The situation that the Government might face with and the measures to solve these problems are discussed.

Key words: Policy, Dynamic game, Consistency