The study analyzes the original system and influences of the Mainland China land finance. The two systems arrange are related to the rise of land finance. One is the land property right, and the other is arrange of finance between central government and local government.Now, the land property give the local government real 「residual rights of control」,the local government can getting land from the farmers with low cost; At the same time, the system of land property also gives the real right to change land property. That makes it can manipulate of industrial land and commercial land price.Second, fiscal reform compensation for the use of urban land, and most of the business tax belongs to local government. In order to pursuit of financial gains, on the one hand, local government transfer industrial land to foreign capital with the low price, in order to obtain follow-up value-added tax and enterprise income tax, on the other hand, the financial sub-interests in the land revenue of the business to empower local, and local governments can learn from the commercial because of the service sector rise high land premium and related tax.Land finance plays a major impact on fiscal revenue and expenditure of local government, social order and the overall economy.
