Abstract: As for the influence of short selling mechanism on the information content of stock price of listed companies in China, the existing literature has not yet solved the endogenous problem between short selling and the information content of stock price.In view of this, the instrumental variable method and the "short selling" system as a natural experiment were used to investigate the causal relationship between the two, and the following conclusions were drawn: First, short selling increased the information content of the stock price;Secondly, short selling has a more obvious effect on the information content of stock prices in the companies with low frequency of analyst tracking and during the bull market.Thirdly, corporate information transparency is the main channel through which short selling mechanism affects the information content of stock prices.The above conclusion means that China should continue to expand the list of securities targets in order to better improve the pricing efficiency of China's capital market.

Key words: securities market;Short selling.Information content of stock price;Enterprise information transparency;Analyst tracking frequency;Market conditions;