Accelerate The Development Of Strategic Emerging Industry Research Capital Market

After the financial crisis of2008, the global economic and social is experiencing anadjustment and change, all countries take the technological innovation and industrial upgrading asa breakthrough in promoting economic and social development, the global economy is entering anew stage with innovation outbreaks and accelerating development of emerging industries.Strategic emerging industries is an important force to guide the development of economic andsociety in the future, which is responsible to transform the mode of economic development, toexplore new economic growth point, to promote the optimization and upgrading of industrialstructure. It’s the industry which is to meet the needs of the community and ease the pressure onresources and the environment, to lead the develop of the industry and technology in the future, toobtain the key point of economic growth in the future, to enhance national competitiveness and toplay a strategic significant role in the economic and social development. So, to cultivate anddevelop the strategic emerging industries is not only the practical needs of economic and socialdevelopment, but also a major opportunity to adapt to the future development trend.Speeding up to cultivate and develop the strategic emerging industries is impossible withoutthe support of the capital market. Capital market (including the stock market, bond market,long-term bank credit and venture capital), as the core platform to allocate resources, which playa important role in the domestic economic development. The capital market and economic growthsupport each other to get common development. Capital market developments support the Chineseindustrial growth in different periods, witness and promote the dynamic evolution of Chineseindustrial structure. It should be noted that the bank credit market, stock market, bond market andventure capital, each play an important role with its own function to promote industrial growth andeconomic growth. The capital market is an important external power to transform the economicgrowth mode, cultivate and develop the strategic emerging industries, promote the optimizationand upgrading of industrial structure, which will play a role in the wider and deeper.The development of emerging industries has gradually become the strategic choice to recovernational economic in all countries. For example, the United States, Britain, Japan, Germany,which all determine their own emerging industries, give full play to the powerful features ofmulti-level capital market system, combine the policy supporting and market mechanisms,vigorously develop the emerging industries and format strong competitiveness in many emergingindustries. Although, China’s strategic emerging industries are mostly at the early or mid-stagewith certain material and technical basis, without strong capability of independent innovation,with many problems in linking with the capital market, venture capital, stock market, bank creditand bond market’s supporting to the growth of strategic emerging industries is not enough, so, tostudy how to make the capital market promote the growth of strategic emerging industries better isparticularly important and urgent. To achieve the target that strategic emerging industries grow tobe pillar industry and leading industry of the national economy, which require a lot of capitalinvestment and the introduction of competition mechanism of market selection, have to guide andencourage social investment with the help of the function and mechanism of the capital market, inorder to make strategic emerging industries become competitive on a global scale. Venture capital,stock market, bank credit and bond market play a different role in different growth stages of thestrategic emerging industries, each with a comparative advantage to promote the comprehensiveinnovation with the combination of technological innovation and business model innovation in order to promote the growth of strategic emerging industries ultimately.To create a favorable policy environment and market environment to promote the growth ofstrategic emerging industries, could consider to develop the venture capital vigorously, establishand perfect the supporting policies and regulatory system to promote the healthy development ofthe venture capital industry, expand the scale of venture capital’s investment to strategic emergingindustries; could consider to play financing function of the multi-level stock market system so asto transfer the social capital from the inefficient industrial sector into the strategic emergingindustries; could consider to guide banks to carry out scientific and technological banking orestablish science and technology bank, explore credit innovation to adapt to the characteristics ofstrategic emerging industries, promote pledge financing of intellectual property rights、industrialchain financing and other financial product innovation actively; also could consider to develop thebond market vigorously, and encourage qualified enterprises to issue corporate bonds to raisefunds to support strategic emerging industries with sustainable developmentIn short, capital market is the external power to accelerate the development of strategicemerging industries, the comprehensive innovation including technology innovation and businessmodel innovation is the inner core of the growth of strategic emerging industries. With the capitalmarket to finance social capital and lead into market selection mechanism to speed up the perfectcombination of capital and innovation, and promote integrated innovation with effectiveintegration of strategic emerging industry technology evolution and business model innovation,and promote healthy and rapid growth of strategic emerging industries, which is the key to seizethe commanding heights of world industrial development to China.