Legal protection of shareholder is the key variable determining the stock market development. Comparing China’s legal protection for shareholder with these of 13 transition countries’ whose stock markets set up at 1990’s based on "written law" and "law enforcement", it is found that the protection for investors provided by Chinese legal system is very limit, and the stock litigations in Chinese security market have proved this conclusion. Thereafter, some proposals to improve Chinese legal system are provided.