With its development of technology and business in the 19th century, the western world started the giant wheel of world history speedily which impacted ancient China. Western countries with their powerful advance technology and inventive skills forced China to do business with them and even waged the cruel wars to fulfill their colonial ambitions. It's late Ching Dynasty and the direction of national history was forced to change. It's so call the late Ching Dynasty Transition. People of wisdom, thinkers of the time, with the highest level of the social ranks, peculiar sense and outstanding thoughts, not only they absorbed the accommodating experience and wisdom, but also they grasped precisely the trend of the world and gave outspoken statements and admonitions. Nevertheless, the satire literature reflected the other sort of people of wisdom who had immorality and misconduct against the social expectation and conduct. Both of them reflected the contrast of social phenomenon. Herewith, we discuss the forming and effects of the people of wisdom with the power of local authorities in late Ching Dynasty from the viewpoint of politics, culture and psychology as well as the method of literature and history interactive comparison