A Study Of Chongqing Manufacturing Development And Financial Support

Since 1990s and especially after China joined WTO, world manufacturing has been shifted to China on a large scale. According the theory of grads development, the manufacturing will definitely move to Western China in what area that the West has comparatively advantage over the East. Chongqing is one of the earliest industry bases, so it is great opportunity for Chongqing to be one of China's manufacturing centers with fast reconstructing and upgrading. The progress of manufacturing upgrading is one from mass resource and labor to mass capital and technology, and it is also one change from traditional to modern. All this must be accompanied by reallocation of resources. In the modern monetary society, allocation and optimization of resources need the support of financial system. Otherwise, the development and upgrading of manufacturing would be greatly limited. In marketing economy, the condition of financial system and service decides the scope and efficiency of resource allocation greatly. Since capital bears the weight of all kinds of resources such as material, technology, management and talents, the trend, amount and velocity of its flow play an important role in manufacturing upgrading. Under the direction of industry and financial policy, a developed financial system and perfect financial service can inject large amount of efficient resources into manufacturing to increase its level. This article analyses financial factors playing in the upgrading process of Chongqing manufacturing, puts forward policies that financial industry should use to increase the support for manufacturing upgrading.