Abstract: The existing literature has done rich research on the impact of the "Shanghai-Hong Kong" and "Shenzhen-Hong Kong" stock connect programs, but few have connected it with the high level opening-up of the capital market. This paper focuses on the impact of the high level opening-up of the capital market marked by the start of "Shanghai-Hong Kong" and "Shenzhen-Hong Kong" stock connect programs on the financialization of listed companies in China. The results show that: 1) High level opening-up of capital market effectively reduces the proportion of corporate financial investment, showing a significant "de-financialization" effect; 2) For non-manufacturing industry, SOEs, companies with high transparency and high dependence on external financing, capital market opening-up promotes a greater reduction in the proportion of financial investment; 3) High level opening-up of capital market can further increases the intensity of capital expenditure and R&D investment, providing financial support for R&D innovation and high-quality development of listed companies. The conclusions provide rich empirical evidence for promoting the all-round and high-level opening-up of the capital market and strengthening the function of financial services for the real economy.

Key words: high level opening-up of capital market, financial assets, financialization, fictitious economy