Information asymmetry in stock market is one of the important factors to destroy the market efficiency. Competitive market is not the end.The market failure is the direct reason for the government to intervene. Accordingly, the efficiency of the competitive market becomes the necessary restriction of government activities. Information asymmetry makes the stock price abnormal fluctuations, from its intrinsic value, will undermine the effectiveness of the market. This paper analyzes the four factors influencing the information asymmetry of stock market and their impact on the effectiveness of the market, and combined with the characteristics of China's stock market, analysis of how the government through the behavior of information asymmetry correction of the stock market, improve market efficiency.

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