This paper investigates the impact of financial market liberalization on corporate radical innovation using Chinese non-financial firm-level data from 2000 to 2022. The results show that increased financial market liberalization promotes corporate radical innovation by alleviating financing constraints, enhancing capital allocation efficiency, and improving credit allocation quality. These findings remain robust even after replacing variable measurements, changing model specifications, and addressing endogeneity concerns. The positive impact of financial market liberalization on corporate radical innovation is more pronounced for firms facing higher financing constraints, governance efficiency, information asymmetry, marketization, and capital intensity. Our study underscores the critical role of thoughtful financial market reforms in driving high-quality corporate development.