Abstract: In recent years,brand equity has become a crucial intangible asset for enterprises seeking to enhance their core competitiveness. As an important information asset,brand equity not only profoundly influences consumer recognition and loyalty but also plays a significant role in capital markets. Beyond consumer-facing aspects,brand equity has a broader impact on a company's financial health,particularly in its relationship with stock price movements. In 2014,General Secretary Xi Jinping,in his strategic instructions on the “three transformations”,emphasized the need to promote the shift from “Chinese products to Chinese brands”,laying a strategic foundation for the development of internationally competitive Chinese brands. This vision has played a pivotal role in shifting the focus toward building stronger brand identities and enhancing the visibility of Chinese companies globally. Following this vision,in 2019,the China Central Television (CCTV) and relevant central ministries launched the “Brand Power China Initiative”,a national media project aimed at cultivating globally competitive Chinese brands through comprehensive media dissemination. This initiative underscored the national ambition to strengthen the global positioning of Chinese brands. In 2022,the National Development and Reform Commission (NDRC) and other departments jointly issued the “Guiding Opinions on Promoting Brand Building in the New Era”,which provided policy support for the high-quality and sustainable development of brand building. These efforts reflect the growing importance of brand equity not just as a business asset but also as a critical component of national economic strategy. This paper empirically examines the relationship between brand equity and stock price synchronicity,focusing on a sample of A-share listed companies in China from 2007 to 2023. Stock price synchronicity,which refers to the degree to which individual stock prices move in alignment with market-wide movements,can serve as an indicator of information efficiency in the capital markets. Drawing on existing research,the study employs the perpetual inventory method to measure brand equity through accumulated advertising expenditure,a widely recognized approach in brand equity measurement. The regression analysis results show a significant negative relationship between brand equity and future stock price synchronicity,with companies exhibiting higher brand equity experiencing lower future stock price synchronicity. This result persists even when different depreciation rates are applied to estimate brand equity,and when brand equity is calculated using accumulated sales expenses. Additionally,to enhance the robustness of the findings,a variety of robustness checks are conducted,including the use of instrumental variables,additional control variables,higher-order fixed effects,and propensity score matching (PSM). These methods were employed to address potential endogeneity concerns and ensure the reliability of the results. The study delves into the mechanisms through which brand equity affects stock price synchronicity. The analysis reveals that the effect of brand equity on improving stock price synchronicity is weaker in companies with more analyst coverage,higher media attention,and greater institutional investor ownership. These findings suggest that in firms with higher levels of external information dissemination and market monitoring,the potential for brand equity to reduce stock price synchronicity is less pronounced. Moreover,by introducing an information asymmetry index,the study further substantiates its conclusions. The regression results indicate that in the firms facing higher levels of information asymmetry,brand equity has a more substantial effect on reducing stock price synchronicity. This suggests that corporate governance mechanisms,driven by strong brand equity,may be one of the key channels through which brand equity impacts stock price. In particular,when information asymmetry is high,brand equity plays a vital role in improving information transparency. A high level of information asymmetry makes it difficult for external investors to obtain critical internal company information,and brand equity,as a key component of intangible assets,helps mitigate this asymmetry. By enhancing the flow of information,brand equity improves corporate governance and facilitates better market pricing,thereby lowering future stock price synchronicity. Further heterogeneity analysis indicates that the impact of brand equity on stock price synchronicity is more pronounced in firms with higher liquidity,lower industry concentration,and greater environmental uncertainty. This finding highlights the conditions under which brand equity can play an especially pivotal role in enhancing market efficiency. Economic consequence analysis shows that the accumulation of brand equity can alleviate information asymmetry and financing constraints,thereby promoting long-term investments by firms,which has a positive effect on advancing the development of the real economy. The contributions of this study are threefold. First,it is the first to explore the relationship between brand equity and stock price synchronicity,filling the gap in the literature on the factors influencing stock price synchronicity. Second,the study highlights the role of brand equity in corporate governance and the mitigation of information asymmetry,thereby enriching the literature on the economic consequences of brand equity. Third,the findings offer valuable insights for investors,helping them more accurately assess the impact of brand equity on firm value,thereby improving the efficiency of resource allocation in capital markets. As brand equity becomes increasingly important in the modern economy,the paper underscores the need for firms to strategically manage their brand assets. Effective brand management is essential not only for building consumer loyalty but also for enhancing performance in capital markets.