Research On Financial Support To The Development Of Strategic Emerging Industry In Our Country

The global financial crisis has a significant impact on the world economicdownturn and every country is searching for the turning point of next economicgrowth. Strategic emerging industry has being developing quickly since the financialcrisis and becoming the key for the next economic leader. By financing strategicemerging industry to drive traditional industries upgrading is the essential way todevelop strategic emerging industry. This paper will research on the financialcondition of Chinese strategic emerging industry to develop the impact on theinfluence of financing strategic emerging industry. Moreover, it will also give somesuggestions on financing strategic emerging industry effectively.This paper will demonstrate the background of strategic emerging industry bydefine it, point out its characters and introduce relative theories at first. Currently,Chinese government sets up special finance and commercial banks has creates newfinancial products for supporting the development of strategic emerging industry.However, problems are still existed to develop strategic emerging industry, such asincomplete financial system, lacking of financial method and short of supportingpolicies. Then, an analysis of an energy-saving environmental listed company (arepresentative of our country’s strategic emerging industry) will be done todemonstrate how the industry developed in industrial competitiveness, potential ofindustrial development, industrial add-value rate and weighted asset and liabilitiesratio. By compare the development condition of industrial development and financialsupport index between indirect financing rate and market capitalization rate, toindicate the positive effect of development of financial and strategic emergingindustry. However, the main financing support for strategic emerging industry isindirect financing. At last, based on the theories and analysis, some suggestions willbe made for developing strategic emerging industry in government increasing support,completing financial systems, extending financing methods and strengthening the support for financing methods.