Abstract: Comprehensively strengthening capital market regulation is an important element in building financial powerhouse. In recent years, with the accelerated digital transformation of enterprises, the information of listed companies has become increasingly transparent. Can this shift effectively reduce corporate breaches and thus empower capital market regulation? With the acceleration of tbuilding financial powerhouse, this topic has attracted extensive attention from both the academia and industry. This paper takes Chinese A-share listed companies as subject and conducts regression tests based on annual data from 2011 to 2022. It is found that there is a significant positive effect of enterprise digital transformation on the breaches of listed companies. Further research finds that while corporate digital transformation can curb a firm’s propensity to breach, it also dramatically increases the likelihood that breaches will be audited by the regulator, and increases the number of breaches notified due to the latter’s ability to play a greater role in uncovering more hidden breaches. Mechanistic analysis suggests that corporate digital transformation affects public company breaches mainly through improving corporate transparency, enhancing equity incentives, and driving investor sentiment. This paper studies capital market regulation from the theoretical perspective of enterprise digital transformation, and the results show that enterprise digital transformation helps to strengthen regulation, compress regulatory vacuum, and then promote the fairness of the capital market.