Whilst it seems that China’s corporate system lags far behind Western developed countries such as the UK, the US and Germany, as early as 1904, China’s first corporate law 1 was promulgated by the imperial government, the Qing government. It included the rule of limited liability and equal treatment of shares among others. 2 Why then did it take another century for a mature corporate law system or governance structure to be established? The past is essential to understanding the current status of shareholder rights and corporate objectives in China. Therefore, the first section of this chapter focuses on the historical development of corporate forms and shareholder rights in China, and their respective features as well as the main causes and effects.