Abstract:The upgrading of industrial structure is a primary task in the Report of the 18th National Congress of CPC, and it is the key to change the economic growth mode in China. This paper starts from the adjustment of financial assets structure, with provincial panel data on the structure adjustment of western financial assets and industrial structure upgrading during 1993-2011 as samples, by constructing a PVAR model, using panel cointegration test, panel impulse response function, variance decomposition technology, panel Grainger causality test to make multidimensional research. The conclusion proves that there is an interactive relationship between the structure adjustment of western financial assets and industrial structure upgrading. But there are significant differences among different types of financial assets and industrial structure upgrading on interaction, direction and path.