Based on the sample of 202 Chinese companies listed in Hong Kong Stock Market(H and Red chips) and a matched sample of 202 A-share companies listed on the Mainland,this study examines whether cross-listing in Hong Kong helps to improve corporate governance of Chinese companies,from the perspective of executive pay-performance sensitivity.Empirical results show that in A-share companies,cash compensation of executives is more sensitive to financial performance than that in HK-listed companies;however,managerial shareholding is less sensitive to performance in A-share companies.The existence of controlling shareholder amplifies these differences.These results suggest: cross-listing in HK could help to change executive incentive from the primary short-term cash focus to the long-term incentive based on shareholding,and the controlling shareholder plays a significant role in this transformation.