The investment system of fixed assets determines the resource allocation approaches in the course of social expanded reproduction. As the planned economy shifted to the socialist market economy，the resource allocation approach has been changed from the mode dominated by direct government allocation to the mode dominated by the market under the government’s macro regulation，so the investment system is unavoidably bound to a fundamental reform. The Ordinance “CCP Central Committee’s decision of several issues regarding the establishment of a socialist market economic system” passed by Third Plenary Session of the 14th CCCCP proposed，gradually established risk responsibility of corporate investment and bank credit，classified the fixed asset investment as competitive projects，basic projects and public welfare projects to conduct different management methods，this Ordinance determined a clear direction for the establishment of investment system that fits a market economy.