An Empirical Study Of The Impact Of Security Market On Industrial Structure Adjustment In China

Since the implement of the reforming and opening policy in 1980s, China's economy grew 8% on average, and its overall national strength and people's living standard keeps rising. However, we should pay attention to the problems that come in to being during the process of economy developing, such as the agriculture base is still weak, the economic crop's proportion is obviously low in the internal structure of agriculture; the manufacturing has little innovation and stays on the bottom of the value-chain; the tertiary industry develops andante, gives little contribution to the grows of economy and so on. All these problems baffle the further development of the economy and we have to upgrade the industry structure, wash out the behindhand output capacity. At the same time, the stock market, no matter the total market value, circulation market value or the turnovers grows quickly. As resource allocation is one of the important functions of security market, so doing analysis of the effect that the stock market exerts during the process of the adjustment of industry structure is meaningful in existing situation.This article first analyzed the principle and mechanism of how the security market affects the adjustment of industry structure theoretically. The security market makes the adjusted increment through collecting capital, choosing industry and supporting high-tech enterprises on the first market. On the other hand, the security market promotes accumulative adjustment through processing information, pricing and risk control on the second market. The security facilitates the development of tertiary industry, optimizes the allocation of resource, leads the progress of private economy and promotes the development of high-tech industry. Therefore, the security market does play an important role in the adjustment of industry structure.Based on the theory, the article tests the effect the security market exert on the adjustment of industry structure, through change of the financing method, both increment structures and accumulative structure of listed companies, and time series theory, with data from 1990 to 2008. The empirical analysis shows that the security market contributes in the optimization of industry structure. After that, we analyze a case that the security market helps new energy industry, in order to prove the influence the security market gives on adjustment of industry structure.In the end, we try to summarize the factors that stop the stock market from supporting the upgrading of industry structure, we think that the size of bond market is too small, the proportion of direct finance is relative low, the structure of investor is unreasonable, the law and veracious environment of the market should be consummated.