The concept of “no-waste city” puts forward higher standards for the construction of national-level urban agglomerations. However, with the continuous accumulation of population in large cities, the existing urban domestic waste treatment mode based on landfill and incineration has been difficult to meet the requirements of green development in the new era due to land and environment constraints. Based on Marxs theory of commodity circulation and property rights, this paper analyzes the importance of waste recycling from the perspective of material transformation, and finds that the phenomenon of “property uncertainty” inhibits the activity for consumers to classify and recycle the domestic waste. But “value adding” can integrates the commodity circulation and renewable resource recovery system and the example of “green account” model of Shanghai domestic waste classification further demonstrates the feasibility of that. Finally, based on this, the paper proposes a policy path and expands new ideas for the classification and recycling of urban domestic waste in new era.