Using the balance mechanism of shareholders' rights to regulate related party transactions can better safeguard the legitimate rights and interests of shareholders of the company from being damaged. The checks and balances here mainly include the independent director system and the related party withdrawal voting system. The independent director system has played an active role in regulating related party transactions. China Securities Regulatory Commission's Provisions on the Authority of Independent Directors also takes the prior approval of related party transactions by independent directors as a prerequisite for the resolutions of the board of directors and shareholders' meeting. The Listing Rules require that when a listed company discloses a related party transaction, it must provide a written document that the independent director approves the transaction in advance.

If there are less than three unrelated directors present at the board of directors, they shall be submitted to the shareholders' meeting of the listed company for deliberation. The listing rules clearly define the related directors. The Listing Rules also stipulate that related transactions with a transaction amount exceeding 30 million yuan and accounting for more than 5% of the absolute value of the latest audited net assets of listed companies shall be disclosed in time, and intermediaries with securities and futures business qualifications shall be hired to evaluate and audit the transaction targets and submit the transactions to the shareholders' meeting for consideration. When the shareholders' meeting of a listed company considers related party transactions, the related shareholders shall abstain from voting.