Abstract: The control power characteristics affect the decision-making motivations of companies′ actual controllers. In turn, it will affect the reduction of its initial shareholding. The paper explores the relationship between reducing ratio and control power characteristics with the samples of GEM listed companies in 2009-2014, finding that the fact that actual controllers conduct internal transactions and reduce the holdings to realize the realization of power is widespread, which has a impact on the minority shareholders and market fairness. And one of the important reasons for this phenomenon is that the control power is hard to be restrained effectively. Therefore, it is necessary to consider reducing two-weight separation, equity concentration and ultimate control rights, and strengthening the supervision of enterprise information disclosure. Further research also shows that the actual controllers′ holding reduction has no significant effect on the performance of the enterprise under the condition of high control right. It is necessary to take a more rational attitude towards such reduction and objectively analyze its motivation;it is also necessary to recognize that the change of control rights is one of the market regulation functions, and that the new capital may bring positive effects to the operation of enterprises, especially in enterprises with excessive control rights.

Key words: characteristics of control power, actual controllers, holding reduction, corporate performance