The paper sampled from Chinese listed firms over the period 2005-2011, we investigate whether institutional investors can optimize corporate resource allocation efficiency, and to what extent the optimization influenced by ultimate controlling shareholders or institutional investors investment style. We find that institution ownership can really promote corporate resource allocation efficiency; further, mutual fund and dedicated mutual fund can cut down over-investment as well as alleviate under-investment. Finally, Institutional investors exert a more significant influence on corporate resource allocation efficiency in government-controlled enterprises; especially in localgovernment- controlled enterprises. What’s more, our evidence indicates that the dedicated mutual fund is the main driver of this enhancement. It suggests that: Changing role of government can help institutional investors better protect minority investors' interests; encourage institutional investors differentiated development; improve corporate government, make the dedicated mutual fund take activism.