Chinese commercial banks have experienced tremendous growth over the past decade but have received limited academic attention due to data collection difficulty. We’ve successfully compiled a hand-collected panel dataset of Chinese commercial banks governance characteristics from 1998 to 2007. We empirically examine the relation between board governance and the profitability of Chinese commercial banks. We find that board governance has significant impact on Chinese banks’ performance. Specifically, higher board ownership, lower percentage of insiders on board, and lower block ownership are associated with better bank performance. In addition, to improve bank performance, Chinese bank managers should also focus on effectively control of bank’s operating cost, increasing net interest margin, and closely monitoring loan productivity. This is the first study conducted on the efficacy of Chinese banks’ governance system and its relation with banks’ profitability. Empirical evidence from this study has important policy implications in reforming China’s banking system into a more transparent and more efficient market driven system.