Research on the integration of industrial capital and financial capital

范培森

The integration of industrial capital and financial capital is the result of economic development and a necessary requirement for large-scale enterprise groups to develop to higher level. It was an urgent issue to recognize this complicated phenomenon. This paper mainly studies the reasons， approaches and significance of the current integration of industrial capital and financial capital.

Integration of industry and finance refers to a dynamic process and trend， which use industrialized capital and financial capital to continuously integrate industrial capital and financial capital， when industrial capital develops to a certain extent， to improve the level of capital operation. Western scholars believe that the essence of integration of industry and finance is more like the combination of monopoly capital， and industrial capital and financial capital is the manifestation of capital expansion.

There are many reasons for the integration of industrial capital and financial capital. In the process of capital movement， when industrial capital and financial capital find that the other party can obtain a higher profit higher， the integration of industry and finance will emerge to share the high profit of the other party. Besides， industrial capital relies on the power of financial capital to achieve the turnover of capital and optimize the allocation of industrial capital. Meanwhile the financial capital also depends on industrial capital to achieve capital appreciation. Furthermore， the expanding nature of industrial capital makes it necessary to find accesses to capital and finance in a sustained， stable and substantial way； and the incompleteness of financial capital leads to transaction costs， moral hazard and opportunism. Therefore， the integration of industrial capital and financial capital began to move from credit relationship to internal capital， in order to establish a relatively stable trading relationship and reduce the transaction costs. Whats more， a good legal and policy environment will further promote the enthusiasm of the integration of industry and finance； on the other hand， it also plays a binding and normative role， which is a motive power of healthy development of the integration of industrial capital and financial capital.

The combination of industry and finance is mainly in the following ways： First of all， industrial capital can be set up separately or set up on the basis of some functional departments. Secondly， industrial capital can also participate in and control the profit of financial capital by directly purchasing shares of financial institutions. Thirdly， the deeper integration of industrial capital and financial capital is the exchange of directors between financial institutions and industrial and commercial enterprises， which is conducive to improving information communication efficiency and operational efficiency.

On the macro level， the integration of industrial capital and financial capital is conducive to optimizing the regulating effect of national financial policies. And it contributes to the rapid flow of industrial capital and improves the efficiency of capital allocation on the micro level.At the same time， the integration of industrial capital and financial capital can contract the economics cycle and reduce the economics wave， which is due to the different operating cycles of the two.In addition， it is also conducive to reducing the transaction costs of banks and enterprises， and improving corporate profits. Moreover， because of the integration of industrial capital and financial capital， enterprises have established a new management model with funds as the core and price-oriented， which is more contribute to the security of capital transactions.Finally， after the integration of industrial capital and financial capital， enterprises can participate in domestic and international competition in a stronger position， thus survival of the fittest and optimizing resource allocation will be achieved. However， there are also some risk factors in the combination of industry and finance. For example， the financial resources obtained by the integration of industrial capital and financial capital， which are used low-cost enterprises， may be over-invested and cause excess production capacity， resulting in an imbalance between supply and demand in market.

Through the analysis of the integration of industrial capital and financial capital， it is known that the development of market economy will inevitably promote the process of integration of industry and finance. And the integration of industrial capital and financial capital is the performance of the continuous improvement of market. Therefore China must strengthen the supervision of it and constantly innovate on the existing basis to adapt to the evolving economic situation.