Upholding and developing socialism market economy must concern about and solve such three basic issues as basic institution, production objective and resources allocation. These three issues constitute the core content of political economics of socialism with Chinese characteristics. In the perspective of basic institution, public ownership must be upheld, state-owned economy must take leading position, income distribution according to labor must be taken as the main body so that the achievements of reform and development benefit all Chinese people. In the perspective of production objective, the increasing, upgrading and individual demand of the material and culture as well as ecological environment of the masses must be satisfied. While liberating and developing productivity, the liberated and developed productivity must be ensured to be owned by Chinese people, the sustainable development road must be taken. In the perspective of resources allocation, because of the help of public ownership in socialist country, governments can play a visible hand role in resources allocation, the allocation effect depends on whether this hand follows objective law of economic development. The socialism with Chinese characteristics pursues common richness, the existence and development of public ownership ensure to commonly enjoy economic development achievements by all people so that the efficiency of the socialism with Chinese characteristics must be the efficiency of the masses and this efficiency is consistent with fairness.