The Impact Of Listed Company Equity Financing On The Upgrating Of China's Industrial Structure

Since we followed the policy of reform and opening, the rapid development of China's economy relies too much on the development of secondary industry and tertiary industry development is slow, the development of high-tech industries is also insufficient,which led to internal and external imbalance of China's industrial structure, thus restricting China's economic growth. The eighteenth National People's Congress also proposed to continue to optimize the industrial structure, and focus on resolving the major structural problems of restricting sustained, stable and healthy economy development. Upgrading of industrial structure for China's sustained economic growth and the upgrading of China's economic structure are of great significance. Capital market, especially the listed companies' equity financing to meet the needs of industrial structure upgrading. In the long run, the efficiency of the financial market in the allocation of financial resources, far more than any other way. Equity financing of listed companies can optimize the industrial structure. How to promote the optimization of industrial structure oriented to give full play to the capital market financing function, and develop appropriate strategies and policies more targeted. It is of great significance to speed up China's industrial structure adjustment and upgrading.This paper from the perspective of equity financing of listed companies to study the impact on industry structure. Firstly, this paper analyzes the theory of industry structure and equity financing, then equity financing of listed companies affect China's industrial restructuring mechanism were analyzed. Secondly, this paper analyzes the status quo of China's industrial structure, different regional industrial structure characteristics and existing problems, and explores China's industrial structure adjustment and optimization direction. Then studies the different forms and regions of equity financing, and the industrial distribution about listed company and its equity financing capital from multiple dimensions, analyzes the problems and ways to improve. Thirdly, this paper using equity financing and industrial economic growth data, constructing error correction model(VECM), respectively using the unit root test, cointegration theory, and Granger causality test method, selected two variables of financial institutions loans and employment rates as control of the adjustment, and added M2 and fiscal spending as a macroeconomic policy variable, then conducted an empirical research on equity financing and the industrial structure upgrading of the Long-term equilibrium and short-term dynamic relationship, and observing their causality in the long term and short term. Finally, this paper summarized the research conclusions, thinking about the impact of listed company equity financing on the upgrading of China's industrial structure and proposed appropriate policy recommendations.There are many irrational phenomena between the three industries and the internal structure of industrial structure. There is a lot of space needs to be adjusted and improved.In the long run, there is a long-term equilibrium relationship between IPO financing, equity refinancing and industrial structure upgrading. And whether it is IPO equity financing or refinancing is better than the loans from financial institutions to promote the industrial structure in the long-term. In the short term, IPO financing and equity refinancing in the role of promoting industrial structure upgrading is not obvious, but it is better than the role of financial institutions to adjust the industrial structure upgrading.Industrial restructuring is a long process, and whether it is short or long term, equity financing in the role of adjusting the industrial structure is better than credit financing. So we should give full play to the role of the stock market, rational planning and improve the financing function of the stock.