Abstract: The stakeholders of seed industry involved multiple entities such as enterprises and farmers, and the difference of target interests among the entities led to the loss of resource allocation efficiency of seed industry. Using the game of interests among enterprises, dealers and farmers, the problem of information asymmetry in seed trading was analysed in the study; after introducing the compensation punishment mechanism, the improvement of seed trading mechanism was analysed. Finally, the direction of system improvement from the dimensions of opportunity cost, competition and cooperation relationship, transaction cost, credit management and balanced linkage devement was put forward, so as to provide reference for the high-quality development of seed industry.