In the rental-based economy that rely on the rural collective land and property leasing, the grassroots government’s behavioral expression facing the rural collective assets management needs further research. Based on the theory of government regulation, this paper proposes the concept of “absorptive regulation” to analyse the policy practice that the grassroots government leads the rural collective assets management. The empirical study shows that, on one hand, the grassroots government improves the rules of collective assets’ holding, transaction and use, which achieves the expansion of administrative supervision. On the other hand, the grassroots government obtains the power of management of collective assets by dominating the rural autonomous organizations and collective assets commission management. The two types of practice above mentioned constitute different levels of absorptive regulation and reveal the extension of executive power and function. In the process, the grassroots government lays emphasis on the balance between legitimacy strategy and substantive objective, through standardizing the economic order and Iimprove economic performance. The absorptive regulation can strengthen the standardization and efficiency of collective economy, but the correspondingrisk from complex market environment and collective property dispute cannot be ignored by grassroots government. The theoretical concept presented through case study shows new form of relationship between government and market in rental-based collective economy，and accurately describes specific behavior pattern of the grassroots government.