The Research Of Circulating Market Of Collectively Owned Land

China is a country characterized by its scanty land resources per capita and sharp conflicts between population and land. It is, then, of special importance how theutility of land resources can be enhanced in a country where 7% of the world's totalarable land is exploited to support 25% of the total population. The target model of China's economic system reform is the establishment of a socialist market economy in which resources are primarily allocated by the market. This facilitates better accessibility to information, lower transaction cost and higher operational efficiency. Land is an important production factor, whose profit, like that of other production factors and economic resources in the society, should only be maximized via marketization.Firstly, the article makes its theme and train of thoughts clearly, defines some basic terms briefly, and reviews some documents and general theories about the marketization of TLUR. Subsequently, in order to prove it's objective necessity, the article investigates the efficiency of TLUR and sums up the present conditions. After pointed out the problem of low marketizational degree and its negative influences, the paper analyses it's reasons deeply. Finally, aiming at the above reasons, the thesis discusses how to establish and perfect the marketization of TLUR in Chinese rural area, and the functions of government.The main conclusions read as follows: (1) On the premise of stabling the land contract right, the land use right could be transferred, in order to make better use of land;(2) Propose considering the net profit of land and farmer's minimum living guarantee synthetically to make the price standard of land, drawing up the fee of TLUR according to the difference between the net profit of land and the contract fee, and perfecting the land grades system additionally;(3) To reduce the transaction costs of land transference, we should establish and perfect the medium mechanism of land transference;(4) To affect the institutional changes positively, government should do a good job of macro-control, and optimize the institution environment continually.