Empirical Study On Promoting High Tech Industries Upgrade By Capital Market

Chinese capital market size keeps growing since90s of last centery. At the same time, it is the moment of truth for the industrial structure upgrade. Optimizing the industrial structure is one of the power source of the economical growth. So how to take advantage of the capital market to service the industries upgrade is a realistic problem.This document discuesses and summarizes the related theories, the connotation and the relationship between capital market and industries structure optimazation basing on the high and new technology industries, and combines the statistical data, econometric model with the statue quo of the our high and new techonology industrials to do the empirical analysis of China’s stock market and the upgrade effects on these industries. The empirical analysis can be devided into two perspectives:micro perspective and neutral perspective. In the micro perspective, I compared the grouth and profitability of public companies in the high and new technology industries and investigated how the capital concentration and the ownership concentration influence the company scale. In the neutral perspective, I used econometric model to do the regression analysis based on A-share market data and other factors affecting the high and new industrial upgrade.The main results of the empirical research are listed below:1. Raise the capitalizition rate and rational trading favor the high and new techonology industrial upgrading. But equity financing and speculation go against the upgrade.2. The stock market plays different roles in different high and new techonology industrial upgrading. Specifically, to the civilian industries, it improves the rationalization of industrial structure. To the military industries, the technical upgrade is much more obvious than the civilian industries.3. The number of civilian public companies is much more than the number of military public companies in the Growth Enterprise Market(GEM) in high and new technology industries. Since these industries have high-risk and high-yield characteristics, GEM will become a platform for the growth of these enterprises.4. To the civilian high tech industries, the scale and capital concentration into inversely related. The lower the capital concentration is, the more attraction the industry will have. The influence of ownership concentration is not obvious.Base on the empirical reseach, the document also gives the following suggestions according to our country’s current situation:1. Enlarge our stock market scale, raise the capitaliton rate are helpful to upgrade the high and new technology industrials. But the blind Market Financing should be constrained.2. Strengthen and improve the construction of current multi-level capital market system. To the immature GEM, should improve the delisting mechanism and add institutional constraints to the phenomenon that the corporate executives sell stock immediately and leave the company after the IPO3. Should be rich in the form of education for investors to inhibite the excessive speculation4. To the high and new technology public company, should improve the information disclosure for R&D funding and supervise the capital operation.5. Current capital market is not very helpful to the infant high and new technogoly companies. We can learn from the Western experience of developed countries to introduce the risk investment system to foster these companies.