The Research On CZT Financial Support For Industrial Structure Optimization Under The Background Of Two-Oriented Society

Since Area CZT became a two-oriented society(Resource-Conserving &Environment-Friendly Society), which was approved by the State Council in Dec. 2007, it has been built a comprehensive reform polite area and made a great success in economic development. Not only Hunan Province, but also the whole country requires fasting economic development of Area CZT. There are some problems during the advancing progress in Area CZT, such as the slow process of urban integration, heavy resistance in economy development and transformation, irrational industrial structure, prominent phenomenon industry structure, invalid resource allocation. Financial support for industrial structure optimization is helping Area CZT improve its comprehensive competitiveness, and confirming that two-oriented development is a right reform path in Area CZT.This research is based on the new background that Area CZT has made a strategic choice to optimize the industrial structure in construction of “two-oriented society”. The article focus on combining theories with practice, and finding a feasible path in financial support industrial structure optimization by using empirical analysis. Firstly, finding a new breakthrough is necessary for accelerating the construction of CZT “two-oriented society”. Secondly,financial support for industrial structure optimization is the best way to explore in two-oriented development model and improve comprehensive competitiveness of Area CZT.Main paragraphs of this article is trying to explain how financial support industrial structure optimization works in Area CZT. It first expounds theories of financial supporting and industrial structure optimization.Then, it combines the economic and financial development status with industrial structure status to analyze the links between them by using charts. It indicate that economy in Area CZT is flourishing and financial system is bank-oriented. It also manifest that Area CZT is under the middle stage of industrialization,the secondary industry is larger than others and developing high-tech industry and strategic industry is the focal point of it. We construct an empirical model(VAR)to confirm indirect financial exert a positive effect on industrial structure optimization and direct financial exert a limited influence on industrial structure optimization. We conclude that there are some existing problems: such as the unbalance between supply and demand in financial supporting;indirect financial is larger than direct financial; financial environment needs improvement.After analyzing the possible reasons, we have made some recommendations: improving financial integration mechanisms and promoting regional financial merging; strengthening financial supervision and risk control mechanisms; building a multi-level capital market and strengthening suitability between financial structure and economic structure.