An Empirical Study Of Capital Market’s Effect On High-tech Industry

With the rapid process of economic globalization comes the increasingly intensecompetition within the scope of science and technology worldwide. In front of thisnew challenge and also a big opportunity, we can see a shift from labor-intensive tocapital-intensive and technology-intensive in China. Since the reform and opening,China has attracted worldwide attention, especially in manufacturing industry Chinahas become the world’s manufacturing plant, but still there are problems such as lowvalue-added products and low technology level, in which aspects exist big gaps withdeveloped countries, and these obstacles may hinder China’s sustainable developmentand further enhancement in global economic position.In the1980s, money was allocated to enterprises, R&D institutions as well asuniversities in the form of state funds and bank loans through "863Project" and"Torch Plan", so as to develop high-tech industry. In this information era, high-techindustry has an irreplaceable role as a country’s key industry, and it needs capitalmarkets to work as an important financing tool. Especially in21st century, as naturalresources’ consumptions and environment pollutions are increasingly serious,extensive developing pattern will not bring us with a sustainable development, sostudy of capital market’s effects on high-tech industry has more realistic significance.This paper studies the role of capital market on development of high-tech industry in China’s specific situation on basis of relevant research. This paper adoptsNational Bureau of Statistics of China’s classification on high-tech industry releasedon “High-tech Industry Statistical Classification Catalogue”, which is based onOECD’s high-tech industry classification; Capital markets refer to only medium andlong-term band loans market and securities markets which are longer than one year,including the bank loan market, stock market and bond market.Based on current situations of high-tech industry, capital market as well assupport of capital market to high-tech industry, this paper analyze data of the twofields from1995to2011through Eviews to further explore the role of capital marketon high-tech industry.Finally through the analysis of empirical results, this paper try to makesuggestions respectively on stock market, bank loan market and bond market, so as tomake better use of capital market to develop high-tech industry.