Using the data of Chinese listed companies from 2003 to 2012 as samples, this paper examines how financial constraints affect cash holdings through the mediating effect of capital investment based on the nature of property right and regional financial development. The research finds that the competition effect of cash holdings achieved through the intermediary role of capital investment is more significant in financial constrains firms, non-state firms, and regions with lower financial development. In the further research, we find the value of cash holdings is enhanced by the competition effect of cash holdings, which is also more significant in financial constrains firms, non-state firms, and regions with lower financial development.