Abstract：Its necessary and reasonable for the local governments to get profits from the land and the motivation of “the land finance” is pure. The land supply has long been monopolized by the governments, but the prices of land and houses skyrocketed only in the recent 10 years. The governmental bidding and auction invitations and listing of lands to be sold are only to discover the true value of the lands and change the distribution structure of the profits from land transaction, but they themselves do not raise the prices of the land. So “the land finance” is legal in procedure and just in mode. The amount and the growing speed of the profit from “the land finance” are not the contributor of the rising of urban housing. In a word, “the land finance” has nothing to the high prices of urban houses.
