The interconnection mechanism of capital market liberalization not only introduces international capital and advanced governance experience, but also increases the information risk level of the capital market in the mainland, brings about supervision effect, and the audit fees also change accordingly. Based on the data analysis of Chinese A share listed companies from 2010 to 2019, it is found that : after the capital market liberalization, audit fees of listed companies have increased significantly; the degree of industry competition negatively moderates the positive impact of the capital market liberalization on audit fees, which is more significant in high market competitive companies, and the negative moderating effect of market competitive position is mainly reflected in high competitive industries. The results show that industry competition and market competitive position have dual moderating effects on the relationship between the capital market liberalization and audit fees. The capital market liberalization is helpful to improve audit quality requirements of enterprises with low industry competition and low market competitive companies in high competitive industries. Further research shows that after the capital market liberalization, audit fees of non state owned enterprises and enterprises with weak internal control have increased significantly.