This paper selects the relevant data from 1992 to 2011 to empirically analyse the relationship between financial innovation and industrial restructuring. The results show that the degree of financial innovation can promote the upgrading of industrial structure to a certain extent; and the degree of financial deepening is inefficient. It may even bring about the reverse expected effect. The higher the proportion of financial assets in GDP, the more likely it may be to hinder the adjustment and upgrading of industrial structure. This further proves that the funds brought by China’s financial innovation have not flowed more to the real economy, and have not met the funding requirements of enterprise development, and the conclusion that China’s financial market and industrial structure development are not coordinated.
Keywords: Financial Innovation, Industrial Structure, VAR Model
