Since the 21st century,deep-rooted structural imbalance and periodical problems have emerged in Chinese industrial development . Industrial structure adjustment becomes an era proposition,the key points of which are to accelerate the development of strategic emerging industries and to upgrade traditional industries .In this context,industrial investment fund has been growing and expanding steadily . Based on the literature review,studies could be extended as follows:firstly,studies have confirmed that extended industrial investment fund could accelerate industrial structure adjustment,but the conduction mechanism and the intrinsic link between them are not clear . Secondly,there is a lack of data mining and empirical test to support the fact that Chinese industrial investment fund could promote the upgrading and the rationalization of industrial structure . This paper discusses whether and how industrial investment fund facilitates industry structure restructuring .The research shows innovations in theoretical framework and empirical approach .As to the former,the micro-effect and the macro-effect of industrial investment fund are integrated into one unified research framework,which fills the gaps in this field . This research shows that industrial investment fund could promote industrial structure adjustment in the following paths .At the micro level,it can be achieved through value creation and R&D input of enterprises .At the macro level,it can be done by way of capital accumulation and employment growth .Meanwhile,the micro level effect will be passed on to that of macro level .As to the latter,Structural Equation Modeling (SEM ) is applied in the research . This paper uses inter-provincial data in China from 2010 to 2012 and simultaneous analysis of several groups in SEM to test the influence of industrial investment fund on industrial structure adjustment . The empirical results show that industrial investment fund has promoted industrial structure adjustment in China . The micro path from industrial investment fund to industrial structure adjustment is confirmed .The increase of industrial investment fund has a significantly positive influence on the micro-effect of value creation and R&D input,and finally boosts the upgrading and rationalization of industrial structure .However,the macro path of industrial investment fund is unremarkable .Industrial investment fund has a strong positive influence on the macro-effect of employment growth,while the coefficient of macro-effect and industrial structure adjustment is not obvious,which means that macro-effect of industrial investment fund is not fully effective . The research suggests that,to further strengthen the positive effect of industrial investment fund on industrial structure adjustment,policies should be focused on guiding rational development of industrial investment fund,constituting multi-level withdrawal channels and balancing the expansion of industrial investment fund across China .