Abstract: With the arriving of all-circulation of Chinese capital market in late 2007,the Chinese corporate governance had experienced change either essentially or formally.The domination of State-held shares of the listed companies had relived and every holder got the real right based on the shares.The various insti tutions such as fund have emerged to the capital market,where had been experienced tremendous revoludon,with the capital from retail andprivate investors.This paper,under the background of post-non-trad able share period,focuses on the relationship between institutional investors whio have the strength and a bility andperformance of firms and empirically examines the efforts of institutional monitoring on corporate governance thus provides the scientific evidence for decision layer and regulation layer.

Key words: institutional investors, corporate governance, regression model, performance of company