Research On The Supporting Effect Of Multi-level Capital Market To The Development Of Strategic Emerging Industries In China

Since the Reform and opening-up policy,Chinese economy has experienced rapid growth for the past 30 years.Yet as time goes on,the disadvantage of the existing development model has gradually shown up in two aspects,one is structural problem and the other,slowdown in growth rate.Under this background,it is of far-reaching significance for China's industry restructure and sustainable development of Chinese economy that strategic emerging industries focusing on technological breakthroughs and product/service upgrade be developed.Throughout the history of world economic superpower,the development of capital market has played a very important role in supporting the rise of emerging industries Therefore,how to build multi-level capital market,to make full use of the configuration and optimization function of capital market,to expedite the combination of capital and innovation and stimulate the rapid growth of strategic emerging industries has become a problem demanding prompt solution.Therefore,the paper analyzed the supporting effect of multi-level capital market on the development of strategic emerging industries and the similarities and differences of the effect resulting from each specific capital market.First of all,this paper systematically elaborates the mechanism of how capital market influences industrial development based on existing literature.A model is made on the production and financing decision of representative enterprises to theoretically verify that the maturity of capital market has a direct impact on industrial production scale.Then comparisons are made between different capital markets as to their effects by further combining the financing specifics and needs of strategic emerging industries.Specifically,stock market can optimize resource allocation and enhance corporate reputation;Bank credit can most promptly meet the financing needs of strategic emerging industries;Bond market can cut operation costs while provide supervision of innovation;Venture capital can strength professional management and provide strategic guidance.Based on theoretical analysis and modeling,this paper then further constructs regression equation of structural formula by using data of enterprises within the strategic emerging industries from A-share market for empirical test on the supporting effect of multi-level capital market on output growth and technological progress,reaching the following conclusions:First,stock market has significant promoting effect on strategic emerging industries and the effect varies in different markets.The promoting effect of stock market is stronger than that of debt market while the main board,the SME board and the GEM of the stock market each has its own advantages.The main board tends to stimulate output growth of enterprises within the strategic emerging industries while the SME board and the GEM plays a more prominent role in promoting technological progress.Besides,the NEEQ also plays an active role in startups of the strategic emerging market.Second,debt market can also promote the development of strategic emerging market and obvious difference exists between debt of different term.Short-term debt has obvious promoting effect of output scale for strategic emerging industries while long-term debt only benefits traditional industries.Debt financing overall supports strategic emerging industry more than traditional industry in terms of technological progress and the effect of short-term debt is stronger than that of long-term debt.Third,venture capital not only provides direct financing for strategic emerging market,but also causes spillover effect in the capital market.On one side,the change in management and operation brought by venture capital promotes technological progress while restrains excessive output growth in the short term.On the other side,venture capital helps companies obtain more equity financing and debt financing in a number of ways.Finally,suggestions are made by combining foreign experience.Multi-level capital market system should be further constructed.Financial innovation should be strengthened to perfect financing service system.Enterprise management level should be strengthened to enhance investor confidence.Government function should be clarified to improve financing environment for strategic emerging industry.In general,different types of capital market all have important supporting effect on strategic emerging industry.We should actively build and perfect the multi-level capital market system,enhance effective support of the capital market to strategic emerging industry and to create favorable conditions for sustainable economic growth.