Research On Financial Support To The Development Of Strategic Emerging Industry In Anhui Province

After the financial crisis, the pattern of global economic competition is undergoing profound changes. Science and technology development is giving birth to a new revolutionary breakthrough. The development of new industries is becoming an significant strategic for major countries in the world to seizing the commanding heights of the new round of economic and technological development. On October2010, the state council promulgated the decision about accelerating the cultivation and development of strategic emerging industry. As major national strategic decision-making, strategic emerging industry was put on our country’s development agenda. Anhui Province respond positively to the call of our nation. Based on the national policy documents and the actual development of industry in Anhui province, electronic information industry, energy-saving and environmental protection industry, new materials industry, biological industry, new energy industry, high-end equipment manufacturing industry, new energy vehicles industry, public safety industry were defined as Anhui province’s strategic emerging industries. They will become the driving force of industrial upgrading and economic development transformation for Anhui province to achieve leapfrog development. The industry’s development can not be separated from capital. Anhui Province has the industrial basis. Using financial capital to boost the development of strategic emerging industries and then upgrading the traditional industries is necessary way to play financial capital’s leading role. This article researched on the financial support to the development of strategic emerging industry in Anhui Province. The current financial support impact on strategic emerging industries was explored and financial support measures were proposed to support the development of strategic emerging industries effectively.Firstly, the article sorts out the existing literature which is about financial support to strategic emerging industries,defines the concept and characteristics of stratigic emerging industry,divides the life cycle of it,then analyses the financing needs and the way of financial support in the life cycle of each stage of its development,what’s more,enterprise financing theory is been introduced. On the basis of the theoretical research, the article’s entry point was determined. On the basis of the status description, the article analyzes how the current financial support impact on strategic emerging industries by using econometric analysis method from the microscopic point. Then suggestions are put forward. In recent three years, strategic emerging industry output value has increased significantly. The government set up the guiding development funds. Policy banks cooperated with the government to offer financial support services. Commercial bank implemented intellectual property mortgage business. Other financial institutions were also involved in supporting the development of strategic emerging industries. But now, there are several problems like insufficient financial institutions’ support, can’t get direct financing, underutilization of private capital, lack of industry investment fund, inadequate understand of financial intermediaries, different regional financial resources. Next, listed companies which belong to strategic emerging industries in Anhui Province are chosen as the example. Return on net assets is chosen as the dependent variable to measure operating results of strategic emerging enterprises. The article also select "rate of loans from financial institutions","bonds payable rate","equity financing rate","internal funds support rate","business credit rate" as independent variables, which representative of enterprises obtain funding ratio from different ways of financial support. Then do the regression by using econometric analysis software. According to the regression results, conclusions of the study are got:Lending financial support play negative effect, the bonds support play positive effect, equity financing support play the weak negative effect, internal financial support play the strong positive effect. Combined with the actual development of strategic emerging industries, the article tries to analyze the causes of the conclusion of the study. Finally, according to the current situation description and empirical conclusions, suggestions like expand direct financing channels, innovation commercial bank legacy support mode, guide the shadow banking system to support strategic emerging industries, strengthen the financial support of government policies, increase the support of venture capital, develop the intermediary’s financial support, play the radiating and driving role of financial agglomeration are proposed to improve the financial support for the development of strategic emerging industries in Anhui Province.