Study On The Effect Of The Stock Market On Industrial Structure Optimization In China

In recent years, China’s economic growth is slowing down. The direct reason is the decline of the external demand, while, the basic reason is that China’s irrational industrial structure. Irrational industrial structure becomes an important factor which increasingly restricts the further development of China’s economy. In this context, the central government put forward a series of development ideas, including "promote reform, transfer mode, and adjust the structure". Consider speeding up the industrial structure optimization as an important starting point for the new period of China’s economic development. Adjusting and optimizing the allocation of resources is the key to the industrial structure. The stock market is an important market for resource allocation, the efficiency of the stock market allocation is directly related to the level of the real economy. Therefore, studying the effect of industrial structure optimization of the stock market is good for understanding the influence of the stock market’s mechanism on industry structure in theory, while in practice, it can push the stock market regulatory authorities to speed up the system reformation and policy improvement, guide the resources flow to the industries and enterprises which need urgent development. In this way, we can improve the resource allocation efficiency of the stock market and promote the optimization and upgrading of the industrial structure.The topic of this paper is "the effect of the stock market on industrial structure optimization in China". With the data from1993to2012, we tried to study the mechanism of stock market that affect on industry structure, and then respectively analyzed the incremental adjustment effect, stock adjustment effect, the overall effect and the structure effect, using statistical description, time series analysis and gray relational analysis method.The results showed that the development of the stock market is an important factor for promoting industrial structure optimization. There is a high correlation between stock market and industrial structure optimization.(1) Incremental changes in the stock market show that the A-share IPO financing amount in the first industry is less than in the second and tertiary industries, while the secondary industry funding amount is greater than that of the tertiary industry. Industry distribution of newly listed companies also indicate a "231" trend. This reflects China’s enterprises of the first industry are less small-scale and relatively of weak profitability, on the other hand, it also shows that the industrial restructure by stock market follows the evolution law of the industrial structure, namely the resources divert from the first to the second industry and tertiary industry. Tertiary industry companies are bigger and stronger, closer to the standards of public financing, becoming an indispensable and important force for driving economic. A-share IPO financing amount and the distribution of newly listed companies in three industries comprehensively reflects the effect of the stock market on the industrial structure in incremental adjustment.(2) Changes in the stock of the stock market show China’s listed companies in the manufacturing industry have obvious characteristics of heavy industry, this feature not only consistent with the national conditions of China’s industrialization recently, but also consistent with the manufacturing sector as a fundamental characteristic of our leading industries. In addition, relevant industry data also shows that the finance function of stock market has spontaneously orientation, created the conditions for the priority of China’s capital-intensive industries and playing an active role in the leading industry of our country for financing. China’s stock market for the development of high-tech industries plays a greater role, which will further promote the technological level of China’s scientific and technological innovation capability, optimize the industrial structure and ultimately play a leading and supporting role.(3) Time series analysis shows that there is a long-term co-integration connection between industrial structure optimization’s index and the development of stock market’s integrated index. Stock market scale indicator has no significant on the optimization of industrial structure that year, but has a varying degrees promote role in lagged one, two, three periods. Meanwhile, the index of liquidity produces a positive role that year, but in lagged one period has no significant, in lagged two and three periods have a counter production. The overall situation shows that the development of the stock market, especially the scale continues expanding promotes the optimization of industrial structure.(4) Gray correlation analysis manifests that the impact of each stock market development indicators impact on the industrial optimization is sorted according to descending order, namely the capitalization rate, capitalization rate, transaction rate, financing rate, turnover rate. Overall, in terms of the influence on the industrial structure optimization, the scale of the stock market is greater than the stock market liquidity. This shows that our current stock market turnover is larger, but the stock market doesn’t fully play its effective role in industrial restructuring. In the flow process, the speculative of stock market is still too strong, this is not conducive to the development of the stock market and optimize the industrial structure.