Before the share-trading reform, Midea would marginalize its core business because its controlling shares cannot be circulated. According to relevant research data, before the share-trading reform, shareholders' shares could not be circulated, which caused them to not care about the stock price of listed companies and not work hard to improve the operating performance of listed companies. On the contrary, they also use related transactions, debt guarantees, direct occupation of listed company funds and other means to hollow out listed companies, thereby obtaining huge amounts of control rights and private interests, and infringing on the legitimate rights and interests of small and medium-sized shareholders. Before Midea's share-trading reform, Midea Group used a series of related transactions to obtain private benefits from control of Midea Electrical Appliances, which seriously infringed on the interests of listed companies and small and medium-sized shareholders.