Aiming at discussion of the practical theory of land finance by taking 'dichotomy analysis' of material and virtual economy, this paper points out that setting up land finance system should be given high priority in the course of developing market-oriented economy in order to disperse and mitigate land investment risk and to improve land allocation efficiency. Land fund is regarded as an effective way of integrating land and finance, indicating the direction of developing land finance system at this time in China.