Abstract: Government-Guided Green Funds are critical policy instruments for directing capital flows toward green sectors; yet, their strong incentives for environmental performance may lead to imbalanced Environmental, Social, and Governance (ESG) fulfillment. Based on data from Chinese A-share listed companies spanning 2013 to 2023, this study employs a multi-period difference-in-differences model to empirically examine the impact of government-guided green funds on corporate ESG imbalance and its underlying mechanisms. The findings reveal that government-guided green funds significantly exacerbate corporate ESG imbalance, a conclusion that remains robust after a battery of robustness and endogeneity tests. Mechanism tests indicate that this effect operates mainly through attracting green investors, increasing analyst attention, enhancing management environmental awareness, and intensifying environmental regulatory pressure. Heterogeneity analyses show that the exacerbating effect is more pronounced in non-heavy polluters, high-tech firms, firms with weak internal control quality, low governance levels, high financing constraints, and those located in regions with less developed financial markets. Economic consequence analysis shows that corporate ESG imbalance distorts internal resource allocation, thereby reducing firms' risk-taking capacity and value-creation efficiency. Further research reveals that government environmental subsidies can mitigate the aggravating effect of government-guided green funds on ESG imbalance. The conclusions of this study provide theoretical insights and policy references for optimizing the institutional design and post-investment management of government-guided green funds, thereby promoting comprehensive and sustainable corporate development.