Abstract: Entry 21 century, global aggressive monetary policy led to global excess liquidity. Because of the higher saving rate, the system of foreign management, the quick development of Economy, the short of financial product and the entry of international capital, the excess liquidity of China is very serious. First this paper gives the definition of excess liquidity. Second this dissertation validates whether our country exists the excess liquidity. Then this thesis probes into the reasons of the excess liquidity in China. Last this paper gives the policies and the advice to solve the problems of excess liquidity.