According to applicable PRC laws, use of collectively-owned land for construction purpose is subject to strict restrictions. But on the other hand, due to the high price and limited supply of the PRC state-owned land, quite a lot of entities have been trying to use collectively-owned land to build factories, register companies or engage in business operations through various grey area practices. Han Yi lawyers have summarized and briefly analyzed in this memorandum several typical cases where a person who is not a member of any collective economic organization is allowed to use the collectively-owned land for construction purpose based on existing PRC laws and practice, and provided some observations on regional reforms and future development trends in connection with circulation of collectively-owned land in the hope that it could somehow benefit potential investors in this area.