This paper selects 2009-2017 data to investigate the relationship between the existence and activity of the internal capital market of the group and the financial asset allocation of enterprises. It is found that there is no significant relationship between the existence of the internal capital market and the financial asset allocation of enterprises, but there is a significant positive correlation between the activity degree of the internal capital market and the financial asset allocation of enterprises, which is shown as a " booster” effect. The internal capital market promotes the financial asset allocation by influencing the available funds and agency of enterprises. Further research shows that the activity of the internal capital market has a more obvious effect on the financial asset allocation of the state-owned holding group and the group with poor financial ecological environment. At the same time, there is a significant positive correlation between the activity of the internal capital market and the long-term financial asset allocation and the increment of financial asset allocation, but there is no significant impact on the short-term financial asset allocation.

This paper puts forward the following suggestions: （1）The internal capital market of the group can produce the " multi currency effect” and " live money effect” to meet the capital demand of group members, so the important role of the internal capital market in activating the group capital should be actively played.（2）Through strengthening the examination and approval of investment projects of group member enterprises, and establishing the financial sharing center, big data information technology should be used to monitor the capital allocation direction of group member enterprises in the whole process to strengthen the supervision of capital flow in internal capital market.（3）In order to avoid the unreasonable investment decisions made by large shareholders in pursuit of private interests and the infringement of the interests of other shareholders, the decentralized equity method should be adopted to check and balance the behavior decisions of large shareholders; meanwhile, compensation and equity incentive for senior managers should be strengthened to restrain the investment decision bias caused by the agency problem of senior managers.（4）The differences of the nature of property rights and the financial ecological environment should also be considered in the supervision of related transactions and capital flows in the capital market within the group.

The contributions of this paper are as follows: （1）It brings single enterprise into the whole category of group, and examines the influence of the existence and activity of the internal capital market on the financial asset allocation of enterprises, which makes up for the deficiency of the existing literature, and better opens the " black box” of the financial asset allocation of group members.（2）It digs out two influence paths of the activity degree of the internal capital market on the financial asset allocation of enterprises, which can reveal the mechanism and deeper logic of the internal capital market on the financial asset allocation of enterprises.（3）The consideration of cross-sectional characteristics can reveal the constraints of the internal capital market on the financial asset allocation of enterprises; the identification of the effectiveness of the internal capital market and the consideration of the characteristics of different dimensions of the financial asset allocation of enterprises are conducive to the in-depth understanding of the relationship between the two and its economic consequences, and provide necessary reference for the classification of enterprises to deal with the problem of financing.