Some factors affect the protection of the rights of china’s small and medium investors, such as: asymmetric information, imperfective system of investors’ return, weak risk sense to small and medium investors, and lower performance in law execution, etc. Meanwhile, the regulators find themselves in a tight corner because of limitation in law enforcement measures, shortage of law-executors, and weak power in law performance. Therefore, in order to improve the protection for small and medium investors, we should do as follows: firstly, the regulative agencies need to speed up transformation, enforce the law more strictly and make higher cost to law-breakers. Secondly, the government should strengthen the legal responsibility of market subjects on disclosing information, establish and perfect the credit platform. Thirdly, the mechanism of investors’ return should be optimized. Fourthly, the regulators should perfect an appropriate investment mechanism for investors; provide more investment education for them, and strength investors’ risk sense. Lastly, more convenience should be provided for small and medium investors to exercise or defend their rights.