The inflation often impacts the economy of a country such as China, and then the inflation can decrease the corporate investment. In this paper, the affecting relationship between the inflation and the corporate investments of the listed corporations in the Chinese stock market was modeled. After analyzing various factors of the investment decisions in this model, we tested the data of the companies, which traded in the Shanghai and Shenzhen stock exchange markets from January 1, 2004 to September 30, 2012. The calculation results show that the inflation and the corporate investments are significantly negatively correlated. When the inflation increased, the corporate investments decreased. However, the decline of income tax rates sometimes would stimulate the increase of the corporate investments in the inflation environment. So the secure corporate investment is to choose the most irrelative corporate investment with the inflation, using the declining income tax rates.