The paper analyzes the cultural characteristics of the Model of the South of the Five Ridges and the institutional meanings. Based on the analysis，the culture of the South of the Five Ridges is considered as a spiritual idea of instrumental rationality trend，which focuses on the contemporary practical results and utility and can precisely be the preconditions necessary for the efficient operation of the market system. Therefore，the paper holds the view that the economic transition in Guangdong is a mutual matching process between the culture of the South of the Five Ridges and the market system. On such basis，the paper puts forward a theory of matching the culture and the market system，and sets up a simple minimization model on institutional matching cost to explain the inherent mechanism and theoretical logic of‘the model of the South of the Five Ridges’. Then it is concluded that if the formal institutions match with the informal institutions，their matching cost will be minimized，which therefore forms the Nash equilibrium solution for the whole institution.