This paper uses empirical research method to test the relationship between earnings management and the rights of share-rationing polices promulgated by CSRC in March 1999 and January 1996. To obtain the discretionary and non-discretionary accruals, the author uses cross-sectional adaptation of modified Jones model. This paper proves that the behaviors of earnings management of China's listed companies are induced by share-rationing polices. It is important for China to quicken up the process of market control in the stock market.