Abstract Related party transactions of listed companies, transactions between the listed company and its controlled subsidiaries and related parties. With the world economy and the continuous development of technology, related party transactions and the exchange of management experience within the group can improve the performance of the company has become a frequent and widespread phenomenon in the modern market economy life. Related party transactions as a sex is inevitable in the social and economic activities, no related party transactions, listed companies are not the development of joint-stock economy lack of development. For its part, the related party transactions on the socio-economic impact is twofold. The first part of this paper is the introduction part, second part describes the basic types of the meaning of the related party relationship with the characteristics of the related party transactions and related party transactions. The third part analyzes the current situation and existing problems of the related party transactions of listed companies in China, reveals a unique ownership structure of listed companies is the main source to produce a non-fair related party transactions. Produce unfair related party transactions is mainly due to economic transformation in the market economy system is imperfect, the shareholding structure of Chinese shares dominance and expansion of rights, not perfect relevant laws and regulations and lax supervision. The fourth part of the proposal and think of related party transactions of listed companies, listed companies should minimize the occurrence of related party transactions. Keywords： Listed companies, related party transactions, profit
