Abstract: Abstract: Since the implementation of reform and opening up policy, the household responsibility system (HRS) has made undeniable contributions to the stability and development of rural economy in our country. However, as the system was produced in the planned economy age, the congenital deficiency it owns has become increasingly obvious along with the transformation from traditional planned economy system into socialist market economy system; especially its shortcoming in land circulation can not fulfill the demand of the development of the social economy any more. In this case, it is imperative to create the ‘land bank’, construct a new system of land circulation and improve the current land contract system.