The last two decades have witnessed China's transition from planned economy to market economy. Along this process, corporate governance has begun to play an important role in maintaining the healthy development and stability of Chinese economy. Within the frameworks of recent theories of company law and corporate governance, this paper examines the development, functioning and effects of corporate governance in China's listed companies. After presenting the institutional environment of China's corporate governance, I use various case studies and legal interpretations by China's Supreme Court to discuss some main issues in corporate governance in China's listed firms, including insider control, information disclosure, shareholder protection, liability of misrepresentation and securities litigation. I show that these issues in essence reflect China's struggle for institutional reform and development.