The market has paid much attention to the increasing holding of placards because of the frequent placards by insurance funds. This paper takes the placards of listed companies in A-share market as a sample to empirically test the effect of placards on the stock market. It is found that the placards have significant impact on the increasing of stock liquidity, but the effectiveness of the market has been weakened. As an important main capital in the secondary market, although there is a great deal of controversy about the placards by insurance funds, the market effect does not differ significantly whether the placards is implemented by the insurance funds or not. There is no significant correlation between liquidity, market efficiency changes and the fund background of placards. Therefore, regulatory policy should not be limited to the reputation of insurance funds placard, while strict supervision of other speculation, hostile takeover and abnormal transactions placards can ensure the healthy development of the capital market.