This paper investigates whether the geographic proximity between auditors and clients affects clients’ stock price informativeness from the geographical economics perspective. Using a panel data from Chinese A-share listed companies from 2004 to 2013, this study finds that the geographic distance between auditors and clients is significantly and positively associated with clients’ stock price informativeness, which indicates that in China’s transitional economy, the geographic proximity may seriously weaken the audit independence and then affect auditors’ auditing quality and finally undermine clients’ information transparency. Furthermore, the analyst attention significantly attenuates the positive association between geographical distance and clients’ stock price informativeness, suggesting that there is a substitution effect between analyst attention and external auditing. Therefore, the stock analysts can play an effective monitoring role in China.