Based on the sample data of listed entities in Shanghai and Shenzhen stock exchanges from 2007 to 2019, this paper empirically tests the relationship between the “strong subsidiary and week parent”group and the financialization of listed companies and its mechanism. The findings are as follows: (1) “strong subsidiary and week parent”groups will significantly improve the financialization level of listed companies, and increase its default risk faced. (2) The “strong subsidiary and week parent”group can improve the financialization level of listed companies by improving the agency problem. (3) When the group has set up a financial company, the analysts pay more attention to it and the internal control quality is good, it can significantly restrain the financialization level of “strong subsidiary and week parent”group; When the listed company is a state owned enterprise, the “strong subsidiary and week parent”group plays a stronger role in promoting the financialization level of the listed companies. The results reveal the mechanism of the influence of the “strong subsidiary and week parent”group on the financialization of listed companies, and provide empirical evidence for further understanding of the “strong subsidiary and week parent”group and for restraining the financialization behavior of this type of enterprises.