This paper investigates the relationship between regional labor market comparative advantages and cross-regional capital allocation of listed companies, and the moderating role of labor protection in this relationship by using a hand-collected dataset of affiliates established by listed companies from 2001 to 2013. It comes to the results as follows:firstly, access to the labor market comparative advantages is an important driving factor of cross-regional capital allocation for listed companies, showing that listed companies are more likely to set up affiliates in the areas with abundant labor resources and low labor costs; secondly, compared to the regions where listed companies are registered, the more comparative advantages of labor market an area has, the higher possibility that the listed firms set up affiliates in this area is; thirdly, the enhancement of labor protection strengthens the abovementioned behavior of listed companies. Further studies find that to obtain labor market comparative advantages, the possibility of cross-regional capital allocation is bigger and the role of labor protection in strengthening this relationship is more pronounced in private-owned and high labor intensive listed companies.