Basel Ⅲ considered the leverage as the complementary of risk-weighted capital adequacy ratio in order to prevent the pro-cyclicality of systemic financial risk.China has formally implemented leverage regulatory standards in 2012.The paper picks data of 1999-2011 to empirically analyze the pro-cyclicality and driving factors of deposit-taking financial institutions in China.Conclusions are as follows: (1) There is significant pro-cyclicality in Chinese deposit-taking financial institutions.(2) Financial institutions actively adjust the leverage according to macroeconomic environment and the developing strategies in order to achieve maximum benefits under certain risk level.In upswing cycle,major factors to determine leverage are Inter-bank rate and Treasury repo rate.In downswing cycle,financial institutions deleverage by improving the ratio of securities to assets.(3) The adjustment of leverage impact on asset price through credit markets and capital markets,forming positive feedback effect and thus amplifying pro-cyclicality effect.