Abstract: Based on the data of a-share margin trading and short selling companies from 2010 to 2014 as the initial research sample, this paper tests the relationship between short selling constraint relaxation and stock price crash risk.Results show that: first, the short selling significantly inhibited the stock price crash risk of listed companies, and the inhibition effect on the management power is bigger, analysts tracking performance is more obvious in the enterprises of the frequency is lower, in the use of unique to China's capital market turn "borrowing" system to alleviate endogenous problem after the above conclusion remain stable;Secondly, through the investigation of the mechanism of action, it is found that short selling has a restraining effect on the risk of stock price crash mainly by improving the information transparency of enterprises.The above research results suggest that China should further expand the list of short selling pilots in order to better play the stabilizing role of short selling mechanism on the capital market.

Key words: Short selling;The risk of a share price collapse;Enterprise information transparency;Turn securities;Earnings management;