Research On Chongqing Finance Development Support The Upgrading Of The Industrial Structure

The upgrading of the industrial structure is the process of continuous optimizationallocation of economic resources, and optimization allocation of resources is just thebasic function of financial market. The upgrading of industrial structure must havecorresponding financial support in order to efficient conduct. However, it is not constantof the promoting action of financial to the upgrading of the industrial structured.Depending on different countries, different regions or different time areas in the sameregion, the relationship between the upgrading of the industrial structured and thefinancial development can also be different. More than30years since Reform andopening up, chongqing has got sustained and rapid development of the economy, anddriven the vigorous development of local financial industry. But in the process ofeconomic development, the industrial structure of chongqing is still not reasonable.How to play the role of allocation of financial resources and then to promote theindustrial upgrading in Chongqing is the important issue we must face.Based on the existing references,the paper analyses the financial needs of industryand financial supply characteristics in theory. Then it concludes that according sixmechanism, which are the industry capital formation,capital orientation, credit catalysis,combination between industry and finance, information disclosing and risk management,financial changes the supply of capital levels and configuration structure so as topromote the upgrading of the industrial structure. And further more, the paper expoundsthe mechanism of action that different forms of financial support the industrialupgrading.Up on the theory research and analysis, by means of the qualitative analysis onChongqing industrial structure and the current situation of finance, Through the analysis,we have found the problems such as low level of industrial structure, slow developmentof industrial structure technical level and lack of power in industrial development. Dueto the insufficiency in financial volume,underdevelopment of capital market and lowproportion in direct financing, the source of industrial capital mainly comes from thebank credit markets.What’s more, based on the related data, it establishes vectorregression model (VAR) and put up empirical test through cointegration analysis andgranger causality test, The paper reveals that great contributions to the industrialupgrading have been made by the indirect financing which is represented by the bank credit, while few contributions have been made by the direct investment which isrepresented by stock markets. Besides, great contributions also have been made by bankcredit to support the development of the high-tech industry instead of the stock markets.The result of empirical research further proves the conclusion reached in the previoustheoretical analysis.Finally, in the basis of qualitative analysis and quantitative analysis presented, itput forwards some countermeasures proposing of the financial development to supportthe industrial upgrading of Chongqing.