Abstract: The article has selected 172 listed companies of Seasoned Equity Offerings as sample from 2001 to 2004.By setting up regression model with five independent variables,the essay verifies the relationship between related party possessing funds and listed company's financial condition.The outcome is as follows: related parties possess the funds of four type listed companies.They are the company which free cash flow is lower at the end of the year,the company which debts increasing higher in the year,the company which leverage ratio is lower at the end of the year,the company which assets are higher.The policy suggestions are as below: Increase the disclosing index in the first part of financial reports.They are the index of free cash flow,debts changing in the year,leverage ratio and assets.The CPA should audit the increasing disclosing index while auditing the funds possessed by related parties.The free cash flow shouldn't be negative number when listed companies getting the right of Seasoned Equity Offerings.