After going into the stage of improving the socialist market economic system, China's economic growth is still mainly rely on the support of large-scale investment and land finance. Development of land becomes one of the most important source of the extra-budgetary revenue. On one hand, local governments receive significant revenues in the land transactions, on the other hand, local governments get a lot of bank loans through financial security and land mortgage. In order to avoid the risk of default, it is necessary to ensure the local governments' land revenue, which not only makes the local debt abducted land finance, but also makes the land finance kidnap high-priced real estate market. This means that if the local governments' land finance income is significantly reduced due to the decline of house prices, especially the huge loss of land finance, many local governments will face the risk of bankruptcy and the emergence of severe debt crisis. In the process of perfecting the socialist market economic system in the future, the government must change and adjust the system and reduce the proportion of land revenue in fiscal revenue through the construction of public tax system. At the same time, it is also necessary to speed up government investment and financing system, establish a local financial system, as well as advance the pace of issuing local government bonds. <<