In order to guard against the manipulation on the stock market made by institutional investors, protect personal investors' benefits, and improve the efficiency of stock market, this article attempts to analyze the institutional manipulation that often happens in our country's stock market, its conditions, mechanism, restriction factors, and its impact on the efficiency of securities market. The analysis is conducted by employing the methods used in the information economics and the signaling game model. Furthermore, basing on the analysis results, the article proposes some constructive suggestions.