The Research On Support Function Of Finance To Strategic Emerging Industries In China

As the global economy has been ragged since the economy crisis in2008,Strategic Emerging Industries have been raised as check points in the technologicaland economy competitions and crucial industries to develop in the Post-Crisis stage inmany countries including China. In these years, Strategic Emerging Industries playsas an important role to cultivate and develop in China’s Twelfth Five-year Guideline.However, the development of Strategic Emerging Industries faces several difficulties,the most urgent one of them is financing. Short of fund limits the speed of thedevelopment of Strategic Emerging Industries, therefore, to achieve the healthy andstable development of Strategic Emerging Industries, a strong support for financialsystem is strongly needed. Based on above, some issues have been raised and widelydiscussed and will be discussed in this paper, they are: a. How does the financialsystem support the development of Strategic Emerging Industries, or namely, what isthe display form of the support; b, what are the difficulties or issues on the processthat financial system supports Strategic Emerging Industries.The views of research of Chinese scholars focus on Financial Supportive System,Funding Channel, Funding Mode, Policy Support, Life Cycle etc. From theseperspectives the whole development status of Strategic Emerging Industries will beconcluded from these views. This paper will analyze Strategic Emerging Industries inChina and conclude the characters of Strategic Emerging Industries like high risky,strategic, creatively, character of leading and prospectively base on the connotation ofEmerging Industries and Strategic Industries. Furthermore, the development ofStrategic Emerging Industries in recent five years will be introduced. The life cycletheory、industries specialties and the risk demand the development of StrategicEmerging Industries needs financial supports, depends on the theoretical analysis, thispaper will critically describe the foundation of financial supporting system forStrategic Emerging Industries. In the paper, In order to analyze the current situation offinancial support for Strategic Emerging Industries, choosing IT Industries representStrategic Emerging Industries participate in imperial studies, because IT Industriesoutput accounting for two-thirds of Strategic Emerging Industries. Selecting theoutput of IT Industries/GDP as an indicator of industrial development, choosing bank loans growth an equity support growth as financial supporting index, by collectingand collating of data, an imperial model will be established. From the imperial studies,bank loans and equity financing do have support function for the Strategic EmergingIndustries. However, issues like shortage of support still exist. In order to solve theshortage of financial support, the paper will arise suggestions of the way to modifythe existing system including establishing financial supporting mode, create financialsupporting form, widen financial supporting channel, improve financial supportingsystem, optimizing financial supporting environment etc.