Based On The Defense Industry Integration Of Capital Markets In Financial Support

Defense industry is the strategic industry of our country.Our country's munition and weapon is produced and designed by the it .There is many weaknesses in our defense industry now, so it is a urgent affair to do the defense industry integration. Defense industry has relation to our country's safety, so the integration of it is special. It must be guided by government but the concrete operating must adopt market method. A high efficient and perfect capital market is very important to the defense industry integration.In the first place, this paper analyze the function of the capital market in the industry integration. In the second place, through investigating the weaknesses and the particularity of the defense industry , this paper consider that after the integration there will be three kinds of enterprises. It is state-owned and state-operated enterprise , state-owned and privately-operated enterprise, privately run of enterprise. To form the state-owned and state-operated enterprise, there should be financial supporting of investing bank, commercial bank and M&A fund. To form the state-owned and privately-operated enterprise, there should be a perfect property rights exchange market. In the third place, on the basis of the investigation on our capital market, this paper suggests some method to improved the capital market and the financial intermediary to support defense industry integration. In the forth place, this paper establishes a contract model for the profit distribution in the enterprise mandated.At last, this paper proposes to found a defense industry investing fund to meet the demand.