With the development of Chinese finance reform and innovation，Mortgage Backed Securitization（MBS） become the key instrument which government，economists and financial institutes pay more attention to. To promote this institute innovation successfully，it is necessary for China to understand the function，meaning，conditions and risk control. Furthermore，to promote MBS in China，we must create favorable circumstance and preconditions. In some sense，it is not difficult to learn advanced foreign technology financial product，the trouble is how to innovate and apply the advanced financial product in China when the system still need improving. In the thesis，we discuss all the steps of promoting MBS in China，in order to realize the good function of this financial product to Chinese economic and social development.