Research On The Influence Of Financial Structure On China 's Industrial Structure

Since the reform and opening which began in1979, the economic has obtained considerable development, but industrial structural contradictions are still outstanding, and also with unreasonable capital distribution problems existing, these are not adapted with the request of economic restructuring and transformation. As the core of modern economy, finance’s core function is capital allocation. Financial structure determines the financial function, but the industrial structure is the result of capital allocation, so there must be relationship between the financial structure and the industrial structure, and promoting the deepening of financial reform and the adjustment of industrial structure is related to the success of the economic structure adjustment strategy.This paper briefly reviews the banking industry, the development of the stock market, the industrial structure and the high-tech industry since the reform and opening. This paper also states the mechanism of how financial structure influencing the industrial structure from the aspects of banking financial institutions and the stock market, analyses empirically the influences of bank credit and the stock market development level, and compares therole played bybank credit and stock market on the high-tech industry. Results show that bank credit exists a long-term equilibrium relationship with the first, second, third industry, the change of credit scale would cause the change of the first and second industry, changes in the third industry would cause the change of credit scale. There is no long-term equilibrium relationship between the stock market development level and the first and third industry, but there exists a long-term equilibrium relationship between the second industry. The analysis of the financial support to high-tech industry shows that the stock market has a greater influence than the bank.This paper proposes several policy suggestions on the basis of stating the mechanism of how financial structure influencing industry structure and analyzing empirically, including the choice of credit policy and the institution innovation of stock market which promote the adjustment and optimization of industrial structure. Finally, this paper presents a study prospect of relevant problems, and describe the strategy and directionof China’s future financial structure reform according to the concept of the optimal financial structure. In fact, only by weighing and comparingthe market-orientedfinancial system and bank-dominated financial system, can China promote the financial development and the economic transformation and sustainable growth.