Abstract: Due to the differences in the types and amount of information owned， the investment logic among transaction entities is heterogeneous， leading to asset pricing deviation. Therefore， even insiders cannot always obtain excess returns in transactions. Based on the insiders' reduction data of listed companies in China from 2006 to 2020， the asset pricing deviation—information bending effect in insiders' transactions is studied. The internal information is subdivided into two types: decision-making information and business information， and on this basis， it is found that there is an information bending effect in the asset pricing process. That is， the internal business information may lead to negative asset pricing deviation， while the decision-making information has the effect of correcting pricing deviation. The information bending effect of asset pricing is significantly affected by environmental uncertainty， information transparency and institutional investors' shareholding ratio. Further research finds that external investors have a strong reaction to insiders' holdings reduction in the short turn， but in the long run， this kind of pricing deviation will be corrected from the inside out. The research conclusions examine the asset pricing mechanism from the perspective of internal information in theory， and enrich the research framework of asset pricing. In practice， the vision of insiders' reduction is explained from the scientific perspective of pricing deviation， which can provide important theoretical basis and data support for improving the information efficiency of the capital market.

Key words: asset pricing; insiders' reduction; outlook theory; pricing deviation; information efficiency