Abstract:This paper is proposed to test the market reaction to the financial statements by going concern opinions. We use Chinas Shanghai and Shenzhen A share listed companies data from 2000 to 2015 to study the going concern audit opinions as an equity market risk transfer mechanism. Study found that going concern audit opinions can lead the public change the way of appraising the company s market value with financial distress. Along with the continuous operation of non standard opinion GCO for the first time, the public attention to valuation of listed companies change from focusing on both the balance sheet and the income sheet to only on the balance sheet, and this concern with the going concern audit opinions appears abruptly rather than gradually. Further study found that the going concern audit opinions can cause the capital market in our country to despise the inventory and intangible assets, while valuing the fixed assets and long term liabilities. So GCO as a kind of important risk transfer mechanism can cause the shift of market valuation about the financial distress companies.