Referring to the Case YinGuang Xia, ( What are the governance flaws in China that can be identified from the YinGuangXia case? What recommendations can be made to solve the corporate governance problems at YinGuangXia or China in general? >>High level of ownership concentration the largest shareholder, which is usually the state holds about 53% total shares in average in a listed company. The second largest shareholder holds about another 10%. The state owns about 59% all the shares in the stock market. 75% of listed companies whose controlling shareholders are with the state or state controlled companies. China can solve corporate governance problems through independent directors of the board of directors,/governance codes,/ fiduciary duties of controlling shareholders independence of listed companies from the parent company directors' fiduciary duties/ information disclosure reform of shareholder rights protection legislation through litigation, accounting reform, and auditor supervision II. The following