A Study Of Integrated Measurement Of China’s Industry And Finance

Accompanied with the enlargement of the financial market, the finance played a increasingly important role in real economy. The rapid development of the financial system can both promote and hinder the industrial development. On the one hand, the financial market can effectively allocate resources and promote the adjustment of industrial structure, which aims to the further economic growth. On the other hand, in the process of rapid development, if the excessive expansion of the financial system surpasses what the real economy needs for the financial service, it would probably cause the bubble economy which leads to a financial crisis. In this context, estimating the degree of combination between financial and industry and finding the main reason for the discordance between the two systems, as well as seeking the coordinated development which can promote China’s economic growth becomes the purpose of this thesis.Firstly, this paper summarizes the basic theory of the combination of finance and industry. Moreover, we discuss the development of process and status of China’s combination of finance and industry. Since the reform and opening up, China experienced three stages:preliminary exploration, development and consolidation, rapid development. At the present stage, China’s combination of industry and finance are still have a lot of problems, such as the types that the enterprises invest financial institutions are relatively simple, the degree of combination between industry and finance is a little bit low, small and medium enterprises in the combination is in the low level of participation. And we emphatically calculated the degree of integration of China’s finance and industry from 1998 to 2014. The calculation results show that:With the time, the coupling coordinate degree of industry and finance, on the whole, show a decreased first and then increased. The main reason of uncoordinated development of finance and industry is that the financing structure of our country is relatively single, fund raising and using was not coordinated, the financing structure of emerging enterprises twisted and financial markets rapid expansion away from the industry. Therefore we recommend:our country should make a reasonable development of financial and optimize the structure of financial assets so that the financial assets can serve the industrial entities. Furthermore, we should perfect the supervision of the financial market and promote the development of the combination between industry and finance.