A Study On The Relationship Between Cearmic Industry Upgrading And Finance

Ceramic is one of Chinese old industries，enjoys a very long history. At present,China has become the world’s largest producer of ceramics, yet not the strongest one. Inorder to better the situation, Chinese ceramic industry has to promote industry upgrading,increase added value from a low level to a higher one, and constantly improve the socialresponsibility of ceramic industries. But there are some problems in the industryupgrading of Chinese ceramics, such as lack of advanced talents, weak creativity ofscience and technology, small-scale production, low added value, poor credit, difficultiesof fund-collecting, a big waste of resources, heavy environmental pollution, appreciationof the RMB, anti-dumping problem and so on. With the rapid development of Chineseeconomy, finance has become the main influencing factor of industrial development. Ourceramic industry upgrading can’t move smoothly without the financial support and itscoordinative development. Financial support is the main outlet of solving these problemsof industry upgrading.This paper will conduct a study on the industry upgrading from the perspective offinance, and aim to enable finance to better serve Chinese ceramic industry upgrading.From the RMB exchange rate, the interest rate of bank loans and stock market financing,the paper analyzes the relationship between finance and ceramic industry upgrading, andfinds that a co-integration relationship exists among the RMB exchange rate, loaninterest rate and ceramic industry upgrading. Besides, the RMB exchange rate and loaninterest rate have an important impact on ceramic industry upgrading, and stock marketfinancing promotes the upgrading of the ceramic industry. On the basis of these findings,some proposals about how finance promotes ceramic industry upgrading will besuggested.