Ever since 1990 when Shanghai Stock Exchange and Shenzhen Stock Exchange were opened, China''s stock markets have steadily developed. In December 2001, China joined WTO membership, forming overall capital markets, and afterwards, it activated foreign investments. But, the Chinese government is somewhat cautious about opening its capital market. Also, the Chinese stock markets have a state-owned-style ownership structure, making the state equity be more powerful. Thus, this study examined the state equity vs. foreign equity on financial performance in listed Chinese companies in China''s stock market with such unique equity structure and characteristics. This study analyzed 1,239 firms which have been listed in Shanghai Stock Exchange and Shenzhen Stock Exchange for twelve years from 2002 to 2013. This study used ROA, ROE, and ROS as dependent variables, and corporate size(total assets) and debt ratio which can influence corporate financial performance - as industry dummies, and the tear dummy as the control variable, in conducting a fixed-effect model panel regression analysis. The analysis revealed that as the state equity ratio increased, ROA and ROE decreased. It was found that foreign investor equity ratio did not influence the dependent variables such as ROA, ROE, and ROS.